Summary
This is a unique opportunity to acquire a well- established Courier business based in the Breedevalley. This highly successfully courier business, operating for over 23 years, provide comprehensive courier services.
Give me more informationFully describe the business's activities?
From there, the courier will take the parcel (along with hundreds of others collected that same day) to the nearest depot.
At the depot the parcel is sorted with others that are addressed to a similar area.
Parcels will often be sent to another depot closer to the delivery location, where it will be assigned to a driver based on their area of coverage.
The next driver takes the parcel from the depot and delivers it to the recipient on his or her next delivery.
How long has the business been established?
Today, 23 years later, the fleet consists of 32 vehicles and 34 permanent drivers.
How long has the owner had the business?
How does the business operate on a daily basis?
Th Business also has a good and mutual beneficial working relationship with competitors in the courier industry. When making use of the services of a competitor it is referred to as "sub-contracting" of services. It allows the business to extend its service to a market which is not economical viable to service on its own.
The company's extensive market coverage and domination of the Breërivier geographical courier market, which cannot easily be duplicated, is what makes the business such a valuable and sought-after asset.
Running the day to day operations of the business is a self-sufficient management team who consists of a manager and 9 (nine) competent office staff.
The business collect and deliver in the following areas/routes:
Worcester and surrounding towns;
Bonnievale, Ashton, Robertson
Touwsrivier, Lainsburg, Sutherland
De Doorns, Rawsonville
Ceres, Tulbach, Wolsely
Paarl, Wellington
Cape Town district (Southern- en Northen suburbs)
By making use of sub-contractors the following areas are also serviced;
Stellenbosch, Strand, Somerset-Wes, Gansbaai, Bettysbaai, Kleinmond, Grabouw, Caledon, Onrus, Hermanus,
Moorreesburg, Malmesbury, Porterville, Riebeeck-wes, Riebeeck Kasteel, Eendekuil,
Bredasdorp, Hopefield, Napier,
Piketberg, Swellendam, Darling, Riviersonderend, Laaiplek,
Velddrif, Vredenburg, Saldanha,
Mosselbaai, George, Heidelberg, Knysna, Struisbaai, Stilbaai, Plettenbergbaai, Oudtshoorn, Barrydale, Ladismith,
Springbok, Bitterfontein, Beaufort-Wes, Calvinia, Carnarvon, Victoria-Wes, Kenhardt, Keimoes, Kakamas, Upington, De Aar, Hanover, Stanford, Citrusdal, Graafwater, Gouda, Hermon, Lambertsbaai, Clanwilliam, Klawer, Lutzville, Vredendal, Trawal, Riversdal, Albertinia.
The company has its overnight distribution depot in the Breederivier district where parcels/ goods, delivered at the depot before 16H30, will be delivered to
Springbok / Plettenbergbaai / Oudtshoorn / Upington etc, the very next morning.
How are the clients attracted to the business?
The company has a proper and functional web-site.
The business enjoys a visual presence with the 32 branded and well maintained delivery vehicles, creating a good impression and company image.
The company is actively contributing and participating, through non-profit service organizations, to alleviate the needs in the community.
What Advertising/Marketing is carried out?
* The company's website is not too long, have a user friendly design and contains all
essential information about the company and its services.
* The company is active on facebook.
* The company sponsor the Mega Oval Kleinplasie stock car hosted in Worcester. Visible
branding at the venue, participating cars and Mega Oval Kleinplasie website.
* The company is a yearly sponsor of the golf day in aid of Pioneer School for the
visually impaired situated in Worcester.
* The company is greatful to be priveleged to participate in the annual Pioneer Rally
What Advertising/Marketing is carried out?
* The company's website is not too long, have a user friendly design and contains all
essential information about the company and its services.
* The company is active on facebook.
* The company sponsors the Mega Oval Kleinplasie stock car hosted in Worcester. Visible
branding at the venue, participating cars and Mega Oval Kleinplasie website.
* The company sponsors the yearly golf day in aid of Pioneer School for the
visually impaired situated in Worcester.
* The company is privileged to participate in the annual Pioneer Rally, to raise funds for the visually impaired, as a sponsor and host at proceedings.
* Proud sponsor of school sports teams at HTS Drostdy high school in Worcester.
* Addressing the company's social responsibility by contributing and participating in
the efforts of Nonprofit organizations (NPO,s)
How did the Covid-19 pandemic impact the business turnover / daily operations?
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Is Seller finance available and for what amount?
Give a breakdown of staff/ functions/ length of service?
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
Breede valley offices;
*R27 000.00 per month
*Deposit R23 000.00
*523 square meters
*Contract indefinite, 60 day cancellation notice period
Parow Depot;
*R33 793.00 per month
*Deposito R23 000.00
*750 square meters
*Expires 30 June 2021. Option to renew contract.
Storage in Paarl;
*R1250.00 per month
*Deposito R0
*Month to month basis
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
The overall condition of the vehicles are good. Vehicles under factory warranty are serviced at the appropriate dealer. Vehicle out of warranty is serviced at a service-center.
Coming from a disciplined working career the owner believes in a robust program
to carefully maintain and manage the vehicle fleet in order to avoid unforeseen and expensive downtime as well as disruptions in service levels.
Are any items not included in the sale?
What is their overall condition?
Which assets are on lease/HP and with whom?
Strengths?
business
* Effective and happy employees
*The business culture is about delivering exceptional service to its customers.
* The latest vehicle tracking and monitoring devises are used in daily operations.
* During the past 23 years the business established a good name and reputation,
associated with reliability and service excellence, in the market.
* Visible branding of vehicles. The professionally designed logo with its black and
orange colours is very effective.
* New clients are referred to the company by "word of mouth"
* Mutual beneficial working relationship with other courier companies. This
relationship enables the company to deliver a service to almost the whole of South
Africa.
Weaknesses?
Opportunities?
Threats?
The local and international economies pose a threat business.
What is the reason for the sale?
Why is this a good business?
The Breedevalley district still has functional municipalities and its economy is driven by farming activities which brings foreign money into the region. Dispite the covid-19 pandemic, and other economic set-backs the Breedevalley district's economy is still performing well.
It is very difficult for any outside business to establish a profitable footprint in the Breedevalley area due to the geografical area (With Worcester in the middle ofsurrounded by 10 smaller towns) as well as the loyal client base. It is always better to buy an existing business in the area than starting one.
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