Industrial Water Transport Company in the UAE

The company that is offered for sale is engaged in the supply of Industrial (Non-Drinking) water to different construction objects and other firms. The company purchases water from sources approved by Municipality and then distributes it to its customers. Since 2004 it has been successfully penetrating the water transport market having 4 capacious trucks and 9 experienced employees working 7 days a week. Based on current demand, there is an immediate scope for adding 2 additional trucks that will add around 100.000 AED ($27.330) to the income monthly. Since the very establishment the company has shown stable and positive financial results, it has proved to be an independent unit with adjusted work processes and professional specialists dedicated to the business.

Details

1. Location: Ajman, UAE

2. Size: 1000 sq. ft.

3. Established: 2004 

4. Annual rent expenses: 25.000 AED ($6.830)

5. Annual license renewal: (Includes Civil Defense & Economic Dept) 14.570 AED ($3.980)

6. License: Transport (Non-People) License

The license is valid till June-2017

7. Annual local sponsor payment: 10.000 AED ($2.735)

8. Staff: 9 employees: 4 drivers, 5 outsourced, 7 working days a week

9. Annual revenue April 2015- March 2016: 2.661.049 AED ($727.062)

10. Annual net income April 2015- March 2016:515. 757 AED ($140.917)

11. Annual cost of sales April 2015- March 2016:1.629.360 AED ($445.180)

12. Annual gross margin April 2015- March 2016: 1.301.689 AED ($288.882)

13. Annual expenses April 2015- March 2016: 515.932 AED ($140.970)

14. Assets: 4 trucks (Mercedes 1993, 10.000 gallons; Mercedes 1998', 10.000 gallons; Mercedes1997, 8.000 gallons; Volvo 1994, 10.000 gallons and Nissan-Tiida 2011'

15. Marginality of the business is 19%

16. ROI is about 5 years

 Taking into consideration the great opportunities for growth, company may significantly reduce the payback period.

 Selling price options:

• 3.000.000 AED ($819.700) in case of the Out Right Sale
• 3.100.000 AED ($847.000) in case of Earn - Out (90% advance, 10% within 12 months from Company Profits)

The price includes:

1. Sustainable and highly profitable business

2. Adjusted work processes

3. Company’s assets: 4 trucks (three of them containing 10.000 gallons, 1 truck containing 8.000 gallons) and a passenger car

4. Experienced drivers

5. Great opportunities to expand the business and increase the profit

6. Customer database

7. A 12-year experience on the market

8. Legal support, which guarantees the purity and safety in the process of the business registration.