Business Overview

This dealership carries the #1 OEM brand of ATVs and UTVs as well as a full complement of parts, accessories, apparel, and multi-line service. It is in a spot renowned for motorized recreation activities, excellent hunting and fishing, and spectacular scenery.

The dealership, established in 1979, and under current ownership since 2013, continues to maintain its strong market share position in both ATVs and UTVs with a loyal and committed client base extending 150 miles. ATV / UTV usage in Wyoming is impressive at 2.4 riders per household.

The 10,000 square foot facility, on 2.5 acres, includes a fully modernized, well-appointed showroom, warehouse and service center. Unique amongst neighboring competitors, eager customers can test-drive ATVs and UTVs on the premises.

The showroom never shut during the COVID pandemic and maintained 2020 sales levels close to 2019 levels. Due to global supply chain management challenges, 2021 sales dropped as new vehicle inventory was limited. Expectations for 2022 are more positive and the industry in general is expected to witness continued growth for years.

The Asking Price includes significant levels of used machines, parts, garments, and accessories Inventory and FFE. New floor plan inventory levels are low (and not included in the Asking Price) which will lessen the total financial commitment for a buyer.

This turn-key operation is being offered at less than what it would cost to establish a new dealership. It will appeal to existing Power Sports Dealerships looking to expand their territory or brands and to new entrants seeking a cost-effective opportunity to get into the Power Sports world.

The prospective buyer must have the liquidity and financial stability required of the parent company for it to approve the transaction. The buyer must also be able to qualify for credit line / floor plan facility.

Financial

  • Asking Price: $745,000
  • Cash Flow: $174,000
  • Gross Revenue: $3,010,000
  • EBITDA: $174,000
  • FF&E: $140,000
  • Inventory: $532,000
  • Inventory Included: Yes
  • Established: 1979

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:10,000
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Leased facilities: - 2.5 acre lot - 6,000 sq ft showroom - 2,000 sq ft warehouse - 2,000 sq ft service center - 600 sq ft outside dry storage

Is Support & Training Included:

Seller will provide 4 weeks of training and ensure an orderly turnover to the new owner. Additional training / consulting would also be available, if required, for an additional fee (to be negotiated).

Purpose For Selling:

The owners are retiring and plan to relocate.

Pros and Cons:

Polaris is considered the preeminent player in powersports. Other major brands include Honda, Textron, BRP, CFMoto and Yamaha. This Business has the largest showroom in the area, carries the largest selection and stock, and provides superior customer service.

Opportunities and Growth:

The sellers believe a Buyer could improve this business by implementing the following: - Add other powersports and machines to the floor, e.g., Yamaha or CFMoto. Dirt bikes, a boat line, and / or jet skis are also opportunities - Establish an ATV / UTV rental facility as none exists in the region. All rental units would need to be owned by the operator - Improved delivery of inventory from Polaris will increase sales opportunities - Secure the Polaris snowmobile line-up for the dealership

Additional Info

The company was started in 1979, making the business 43 years old.
The transaction does include inventory valued at $532,000, which is included in the suggested price.

The business has 5 employees and is situated in a building with approx. square footage of 10,000 sq ft.
The real estate is leased by the company for $3,850 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell companies. Nonetheless, the real factor and the one they say to you might be 2 completely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or a variety of various other factors. This is why it is really important that you not count absolutely on a vendor's word, however instead, use the seller's answer along with your total due diligence. This will paint a much more realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover items such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that profit margins are too small. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in brand-new consumers? Most times, operating businesses have repeat customers, which form the core of their everyday revenues. Certain variables such as new competition growing up around the location, road construction, and also personnel turn over can affect repeat consumers and also adversely influence future profits. One essential thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the higher the chance to construct a returning customer base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the local typical family income influence future earnings prospects?