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Fuel Wholesaler Business For Sale
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Business For Sale


Fuel Wholesaler For SaleFuel Wholesaler For SaleThis fuel distributor for a well-known oil company in a rural area with mining and farming activities since 1980 just became available.  If you want a country lifestyle with city income you have found it.  Distribute Petrol, Diesel, Paraffin and lubricants to end-users and filling stations alike.  The Wholesaler has room for improvement on margin and growth prospects as well.s.  Businesses like this seldom comes on the open market, don’t delay. 

  Selling Price     9.700,000   Turn Over Per Month     14,145,568
  Stock Included 300,000    Profit Per Month 262,378
  Assets Included 2,950,000   R.O.I %  31,49%
  Total Price   10,000,000    

 History and Overview Of The Business
Fully describe the business's activities  This is fuel distributor that stores a small amount of fuel on site, limiting significant stock to be carried but supplies directly in most cases from supplier depots to the end user. The service under contract the smaller service stations of a well know oil company on a distribution contract. So Retail are one leg. With the large volume of agriculture in the area that forms another leg. Then with a strong mining sector they have a third leg to supply. They have 3 tanks on site above ground, 1 x 23,000 litre Diesel (500ppm) and 1 x 4500 litre Diesel (50ppm) tank.
When was the business established? 1980
How long has the owner had the business?  Owned by the family for two generations since inception
 How Does The Business Operate
How does the business operate on a daily basis Owner operated in a control and overseeing capacity. Orders placed by clients are ordered from the suppliers, client invoiced and on payment delivered to the end customer.
How are the clients attracted to the business? Word of mouth, telesales to various clients and some advertising. Some clients have contracts in place.
What Advertising/Marketing is carried out? Telesales and advertising
Does the business have any contract work?  Some clients have contracts in place. Will be discussed with approved buyers.
What competition exists? Normal
Seasonal Trends?  Mining and Retail is rather fixed, agriculture is more seasonal
 Financial Information
Vat Registered?  Yes
Vat Documentation on File?  All Current and up to date
Management Accounts?  12 months up to Feb 2016 
Audited Financials?  Feb 2016
What as Cash/Credit Split?  5% on Account, 95% EFT payment up front, pre delivery
Debtors Book Age Analysis 30 days
How can you improve the profitability?  More volumes, and better margin due to the very large turnover will be significant to the bottom line.
 Is Seller Finance available and if so what is it?  No cash sale
   Staffing Of the Business
What is the total number of Staff? 16 Staff members and the Owner.
Staff Breakdown Will be provided to buyers
Staff Special Perks and Bonuses? Yes, drivers do get on performance
Are the staff on Contract?  Yes
Does any of the staff have management potential?  No
How involved is the Owner in running the business?  Hands on, owner operated
  Premises Of the Business
When Does the Current Lease ends?  Month to month but can be extended long term as the owner of the property would like.
Is there an option to renew?  Yes, 5 years or more. Owners would prefer a long term agreement
What is the annual escalation %  5%
What are the Trading Hours? Mon – Fri 07:00-17:00 Sat 07:00 – 11:00 Sun Closed
What is the square meters?
Is a copy of the lease available? Yes
Do You require a license? Yes from the DME, also a supply agreement from the Oil Company.
 Assets Of The Business
Full Asset List available?  Yes, owner will provide.

 Anything not included in the sale? Only personal vehicles and small personal items
 What is condition of the assets  Good, none needs repairing
 Any Assets on Lease/HP that Buyer needs to take over?  Will be settled
 Are they insured at the moment?  Yes
  SWOT Of The Business
 STRENGHTS Good service
Well established
Supplier in the area for a major oil company.
Barrier of entry
 WEAKNESSES Might be spread a bit thin without backup fuel on site
 OPPORTUNITIES The supply agreement of the oil company and the distribution on their behalf opens more doors.
Various clients still to supply in the area
 THREATS  None perceived apart from potential clients loss secured by split payment and the client warranty
Why is this a good business Well established business that has been around for 36 years with constant growth and a good reputation. With a strong hand and some financial muscle it will grow faster and increase profits
Why is the owner selling it? One owner emigrating, the other wants to do something else

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have viewed this page since 11 July 2016