The group of companies is engaged in trading – buying grain and oilseeds from an agricultural producer with their subsequent resale to large international traders (Glencore, Cargill, Sierentz, etc.).
For this purpose, the group involves 2 companies – one trading company, which is engaged in the purchase and sale and processing of grain, and a holding company that owns an elevator and leases it to a trading company.
The trading company has a staff of 16 employees including purchasing managers, warehouse workers and laboratory assistants.
The holding company owns an elevator with a capacity of 7,000 tons of one-time storage and the ability to receive and ship 1,200 tons per day.
The elevator has a gas grain dryer with a capacity of 250 tons/day, an electrical substation of 800 KVA, 3 warehouses with a total capacity of 7,000 tons, an auto scales, an administrative building with a laboratory, a car dealership, machinery and equipment for unloading/loading grain, a 640 m long railway track (dead-end included in the asset list of the railway).
The elevator is located at Shevchenkovo-Pivdenne station on 3.6 hectares of land owned by the holding company; it is a route station.
At the moment, the enterprise is operating at 10-20% of its capacity due to lack of funding.
The company buys grain and oilseeds from agricultural producers at 100% prepayment, brings them to the elevator and, after waiting for the price, sells to traders on the terms of either the seller's EXW warehouse (according to the warehouse receipt) or CPT port with delivery by rail. Products are paid 80/20 – 80% on a warehouse receipt or on a railway invoice, depending on the terms of the contract, within 1 day – 20% after registering a tax invoice.
The average profitability is UAH 200 per ton, that is, with the sale of 5,000 tons on average per month, the gross income is UAH 1,000,000.
Fixed costs for the maintenance of the elevator and office amount to 200,000 employee bonuses – UAH 20/ton. With sufficient funding, we can talk about an increase in business margins due to seasonal price fluctuations.
The required funding is UAH 5 million minimum, UAH 15 million is the desired funding, and UAH 30 million is sufficient.
We can offer 3 options to Investor:
- 100% buyout of the business – USD 900,000. At the same time, the team remains and I am ready to lead the business and take responsibility for the results.
- 50% ransom – USD 450,000. I remain a co-owner of a 50/50 profit sharing business.
- Investments in working assets of at least UAH 15 million – the investor receives 35% of the profit. The profit is paid once a year.
