ELITE TRANSBORDER (E.T. hereafter) is a freight transport company based in Poland with European capital. It holds a freight transport licence and has access to European freight exchanges.
For longer than two years, E.T. has pursued a cross-border development policy by acquiring stakes in companies outside the European market.
Equity participation is a way for companies from outside Europe to access the European market. It allows a non-European company to act under the cover of a link created when acquiring company shares.
The European transport market is experiencing a boom in demand from service providers but remains highly standardised. A licence from a European country is required before a service provider can operate in Europe. The numerous standards relating to driving time, rest periods and working hours make it less attractive to increase the size of the in-house truck fleet and the number of employees compared with groupings of companies.
These groupings respond to economic needs and make it possible to win more service contracts while increasing sales without reducing margins. It is the plurality of participants that makes this possible.
E.T.'s target is to grow its network of partners by acquiring stakes in companies from outside Europe. The growth will enable partners to operate under E.T.'s licence and thus gain indirect access to European freight exchanges. Conversely, E.T. offers companies outside Europe the opportunity to acquire an active stake in its share capital, enabling them to operate on the European market under E.T.'s licence.
Cross-shareholdings are also a solution.
Generally, equity participation happens when a company calls on capital to finance itself, at the startup or when it needs finance that a bank loan will not provide. An equity investment is a "venture capital" operation. It is not repayable like a loan and constitutes a capital contribution that adds value to the company.
According to the specialist literature, an equity investment often offers three advantages:
Our offer does not seek to emphasise the first two points since the equity investment remains minimal. Our suggestion focuses on the benefits of acquiring a stake in other companies: access to professional networks.
Our offer targets any company or craftsman with one or more lorries wishing to offer its services in Europe. Of course, the truck(s) must comply with European standards (Euro 5 / Euro 6), and the drivers must hold a licence recognised in Europe (EC Code 95 driving licence).
The main advantage lies in access to European markets, which offer a wide range of services at attractive prices. Our offer eliminates the need for companies outside Europe to set up in Europe and acquire a licence to transport goods.
Our offer can constitute a constant volume of business, enabling partner companies to hoard and thus develop actions on their local markets. The business volume is part of the contract.
Equity participation is minimal and does not compromise the independence of the companies.
E.T. undertakes to pay its contractors in accordance with the terms of the service contract. In Europe, many companies use inter-company credit and pay within 30 days or more. E.T. offers a cash advance to pay its partners.
Take into account the following conditions:
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