Listing ID: 79062
This snowmobile rental and guiding company has been in business for over 20 years and is the premier snowmobile rental company in its market and has become a destination for visitors from all over New England and beyond. The company operates as a Subchapter S corporation and is looking to transfer the business as an asset sale.
The company offers guided snowmobile tours and self-guided snowmobile rentals in the White Mountain National Forest. Well-groomed trails take riders through pristine forests with stops at majestic scenic overlooks. Some trails feature long straightaways to scenic locations while other winding trails gain in elevation towards spectacular views. Opportunities exist for novice or expert riders, individuals, and families alike as the business is proud to use the finest equipment available to ensure the best possible experience for their customers. All snowmobiles have electric start, hand warmers and reverse.
The recreation industry in northern New Hampshire caters to visitors who enjoy the great outdoors throughout the year. Winter brings some of the best snowmobiling opportunities in New England with hundreds of miles of wide-open trails which feed directly into popular Maine and Canadian snowmobile corridors as well.
Generally speaking, tourism destinations all over northern New England saw an increase in visitors beginning in the summer of 2020 and carrying into the winter as COVID took hold of the world and people escaped to where they could naturally socially distance. This trend continued into 2021 where establishments were able to open once again close to capacity, and COVID weary visitors continued to escape to where they could enjoy the outdoors but still be able to find a place to stay and somewhere to dine inside. As northern New Hampshire is a driving destination for Massachusetts, Rhode Island, Connecticut, Maine, New Jersey, and New York visitors, within a 3–6-hour drive of major population hubs, this area has fared extremely well in times when people are wary of air travel and regardless of the price of gas. Even during periods of inflated gas prices when coupled with economic uncertainty this destination usually outperforms fly-to destinations.
- Asking Price: $1,100,000
- Cash Flow: $310,190
- Gross Revenue: $1,056,444
- EBITDA: $222,883
- FF&E: $882,547
- Inventory: $10,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The business utilizes a 1000 square foot building which is used as the main office and reception area, an 1800 square foot barn, a 1200 square foot garage, and two 8 X 20-foot trailers. All facilities are in very good condition and provide an efficient and professional use of space. All of the snowmobiles used for rentals are less than five years old and are well maintained. All rental equipment and clothing are also in very good condition. This company prides itself on offering only the best maintained, cleanest, and newest equipment for use by their customers.
The current owner is willing to stay on and train for two weeks after the transfer of the business at no charge. They are also willing to discuss contracting for longer term training and support depending upon the needs of the buyer.
The owner is looking to concentrate on other business interests.
Competition is limited as the state of New Hampshire has licensed only five snowmobile rental/tour operators, and the closest operator which offers guided tours is located 30 miles from this company’s location. Competitive advantages of this business are based on the fact that they are considered the number one snowmobile rental operation in the market, and they are the longest operating snowmobile rental business in the state of New Hampshire with the benefit of operating in an area which historically sees the longest riding season. Also, there is an extremely strong repeat following complemented by word-of-mouth referrals which keep this company a step ahead of their competition. As there is not enough supply of snowmobile rental operations in the area, weekends are sold out four to eight weeks in advance.
As the size of the rental fleet is currently maximized due to permitting realities, growth areas are centered on operational diversity, which could include a retail component, small engine repair, motorcycle repair, sled repair. The barn can be used for snowmobile storage. Current marketing is through brochure distribution, web presence, and lodging relations. Weekend supply cannot keep up with demand, but more time can definitely be spent fostering lodging partner relationships and social media to positively impact midweek business.
The venture was established in 2000, making the business 22 years old.
The sale shall not include inventory valued at $10,000*, which ins't included in the listing price.
The business has 8 employees and is located in a building with disclosed square footage of 4,000 sq ft.
The real estate is leased by the business for $2,083.33 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. Nonetheless, the genuine reason and the one they tell you might be 2 totally different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or a variety of other reasons. This is why it is extremely vital that you not rely absolutely on a vendor's word, yet rather, make use of the vendor's response in conjunction with your total due diligence. This will paint an extra realistic picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that earnings margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new customers? Most times, businesses have repeat customers, which form the core of their daily earnings. Particular factors such as brand-new competition growing up around the location, roadway building, as well as employee turn over can influence repeat clients as well as adversely impact future earnings. One vital point to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the better the possibility to build a returning client base. A final idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood mean household income impact future earnings prospects?