Profitable Agricultural Business
Location Kazakhstan
Asking Price Range $1.0M - $2.5M
Gross Revenues $0
Net Profit / Cash Flow $0
Cash Flow Type EBITDA
Seller Finance Not Disclosed
Year Established 1993
Number of Employees 50 - 99
Inventory $1,250,000 Not Including Land.
Relocatable Not Disclosed
Number of Employees 50 - 99
Real Estate Leased
Training Full
Reason for Sale Relocation.
Description Asking Price: Aœ1m ($2m)
Reasons for sale: Re-locating
The business was established in 1930, present owner owns since 1993. It is located by a main road near the town Kordai, which gives good access to buyers and clients.
The Government conducted an evaluation of the value of the property and buildings (not including the land) in 2003 at Aœ650,000 ($1,240,000). Since then the assets have expanded and also the valuation did not include some of the machinery or the leasehold on 1172 hectares of land. 400 hectares is on lease for 49 years and the remaining 772 hectares is on lease until 2011. We have full rights to buy the land, 1172 hectares would cost $160,000. The assets include a bread processing factory, warehouses, metal storage unit for 45000 tons of grain, a Mill with a productivity of 25 tons of grain. Also included is machinery for the production of concentrated feed, 120 tonnes per 24 hours. Corn oil production machinery (1500kg) and processing machinery. Pefkus giant 50/70 tonnes per 24hrs. The machinery is 20 years old, fixed/repairs every year, could be sold for $100,000. Vehicles: 4 Tractors, 5 Seeders, and 7 Heavy Duty lorries.
Income is from selling grain, contracting to local farms, storing local farms grain in the warehouses, transporting grain, and also from the buying and selling of grain from local farms. Also, local farms store their grain in our facilities (which we charge for) they then sell this grain to larger companies who also pay to store it in our warehouses, and we make money buy arranging the sale of this grain.
The business has 50 employees, 150 during the harvest.
The company has been granted a special tax regime, whereby tax paid on the income from the farm is reduced by 80%. This also applies to the company assets and on land tax, which are subject to a 1% of value tax, reduced to 0.2% of tax due to the tax regime (i.e.80% reduction).
Profit is on average $300/$400,000.
Full training provided
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