Profitable Gas Station for Sale

 

 

Profitable Gas Station for Sale


Selling Price (Excluding VAT)

R 13 000 000.00

 

Monthly Profit

R 121 000.00

Assets

R 2 010 000.00

Stock

R 201 000.00

 

This Gas Station is ideally situated on a busy intersection. The business has been built up over the past 6 years and the infrastructure works like a well oiled machine.

The Staff of 16 people has been well trained and the operation can run without direct involvement of the owner

 

Fully describe the Business Activities

The business has been operating for the past 6 years and is a well established and profitable Gas Station on a busy Intersection in the Eastern suburbs of Pretoria.

How long has the business been established?

The business was established in January 2012

How long has the owner had the business?

The owner had the business since it was established in January 2012

How does the business operate on a daily basis?

The business is open 24 hours per day and the staff works shifts of 8 hours.

The management and Kiosk staff only operate during normal woking hours which is from 07h00 to 17h00

How are the clients attracted to the business?

The business is situated on a busy intersection and most clients are regular clients.

What advertising and Marketing is carried out?

There are huge billboards and signs on the premises. There are also regular competitions and similar activities to boost sales.

What Competition exists?

The closest filling station is about 6 blocks away

What are the seasonal trends?

There are no significant seasonal trends seeing that the business operates in a high traffic zone.

Is the business VAT Registered?

Yes, the business is VAT Registered

What VAT documentation is on file?

All VAT documentation is on file and up to date

Are there up-to-date Management Accounts available?

Yes, Management Accounts are up to date and available to prospective buyers

What Balance sheet and Income Statements are available?

Audited Balance Sheet and Income statements are available up to March 2017, and unaudited Balance Sheet and Income Statements are available up to date.

What percentage of the business is cash or credit?

80% of the business is cash and 20% credit. Credit Terms are 14 days and only granted to long standing reliable clients.

How could the profitability of the business be improved?

The profitability can be improved by extending the current fuel pumps. A comprehensive plan for this operation is available.

Is seller finance available and for what amount?

Yes, seller finance is availableup to R 1 million depending on certain criteria.

What is the total staff compliment?

The total Staff compliment is 16 of which there are 3 Shift Team Leaders and a General Manager

Give a breakdown of staff / functions and length of service.

10 of the staff members has been with the business since its inception and the rest all have more than 2 years service.

Do any receive special perks or incentive?

No there are no special perks or incentives.

Are they on contract?

Yes, all staff members have a 12 month term contract

Do any have management potential?

Yes, three of the staff members have potential to become team leaders.

How involved is the owner in running the business?

Although the involvement of the owner is not required, the current owner is involved in the daily operation of the business.

When does the current lease end?

The current lease ends on 31 Dec 2021

Is there an option of renewal and what period?

Yes, the lease can be renewed for a further 5 years.

What is the annual escalation percentage?

The annual escalation rate is 7%

What are the trading hours?

The business operates 24 hours per day

What is the square meters of the business?

The property is 15000m2 and the building are 350m2

Is a copy of the lease available?

Yes, a copy of the lease agreement is available

Do you require a license?

No, there are no additional licenses needed

What are the main assets of the business?

Machinery, Fuel Pumps, Tanks, Kiosk Equipment, Office Equipment and Vehicles

What is the overall condition?

The overall conditions of all the assets is very good

How have the assets been valued?

The assets have been valued by a third party based on the cost value

Are the assets presently insured?

Yes, all the assets is comprehensively insured.

Strengths

The main strength of the business is the location and the fact that everything in the business is very well managed.

Weaknesses

The Weakness of the business is that is does not have more room to extend

Opportunities

Opportunities for the business may lie in the ability to add a workshop to the existing setup

Threats

The political and crime situations are threats to all businesses in the country.

What is the reason for the sale?

The owner is emigrating

Why is this a good business?

The business is running well, books are in good standing order and profits are in line with the Investment.

Christo Fouche

081 2700 884
christo@onlinebusinessbrokers.co.za

 

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