Listing ID: 80658
This Company is one the most experienced and trusted Kayak and Snorkel Tour businesses in Hawaii and has been in business for over 20 years. The company specializes in small group ocean eco-tour experiences. Their kayak tours include snorkeling along Hawaii’s ocean fish-filled reefs. It’s solid base of customers include direct online reservations through the company’s professional website, and from their strong relationships with worldwide reservation agents such as TripAdvisor and Expedia, as well as corporate group convention outings and Hawaii activity booking agents. They have excellent ratings on all travel web platforms including TripAdvisor, Google Reviews and Yelp with a top SEO result on Google search. They are fully permitted by both their County and the State of Hawaii.
This is a great lifestyle business which provides enough income for the owners to live very well in Hawaii’s paradise.
• The business is long tenured and well established with major local and online distribution booking entities like TripAdvisor and Expedia.
• Excellent reputation with on island activity sales desks and entities.
• Excellent long history of customer reviews online (Google, TripAdvisor, Yahoo)
• Has strong relationships with the major corporate marketing companies (“DMCs”) who book most of the corporate events activity purchases.
• They have multiple County and State of Hawaii operating permits for different locations. Repeat customers therefore can kayak a different location.
• A big advantage the Company has, because it operates on numerous permitted locations, is that if the weather or surf at a schedule tour location is bad, they can move the tour to another of their permitted locations instead of cancelling the tour.
• Strong recovery from Covid.
• Strong profit margins.
• Customers can book tour reservations on-line on their website, by-passing the commission sales agents.
• Relatively easy to operate.
• Attractively priced.
• Consistently good revenue and profits. 2021 SDE of $179,031 on Sales of $345,041.
The Business is being offered on a fully turnkey basis including all operating assets and permits, plus a long-term non-compete agreement and training provided by the Seller, due to the pending retirement of the owners.
To obtain our detailed, 60 plus page, Confidential Business Profile, which includes all relevant business information and tax return based financial data, please contact Hawaii Business Sales.
- Asking Price: $395,000
- Cash Flow: $179,000
- Gross Revenue: $345,041
- EBITDA: N/A
- FF&E: $50,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:200
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Business operations are home based Base yard for equipment storage is Leased Base yard monthly rent: In 2021 - $700 per month; $8,400 per year; and $3.50 per sq. ft. Approximately a 10 by 20-foot storage shed (200 sq. ft.) and significant uncovered base yard space for storage of kayaks and trailers. Base yard lease expiration date: Month to Month (Home Based)
• They believe they are one of the largest providers of ocean kayaking on the island and have only modest competition. • They are fully permitted by both the State of Hawaii and their County. • Excellent website where customers can book reservations directly, which saves the Company from paying commissions to reservation services.
They have several growth opportunities including Kayak fishing tours, Stand Up Paddle Board Tours and Kayak rental delivery. They currently get a number of calls from people wanting to rent Kayaks, but currently do not do so.
This Business Is Home Based
The venture was established in 2000, making the business 22 years old.
The company has 5 employees and is located in a building with disclosed square footage of 200 sq ft.
The real estate is leased by the business for $700 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nonetheless, the real reason and the one they tell you might be 2 completely different things. For instance, they might claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be reasons to try to hide the reality of altering demographics, increased competition, recent reduction in profits, or a variety of various other reasons. This is why it is really important that you not rely completely on a seller's word, yet rather, utilize the vendor's answer combined with your overall due diligence. This will repaint an extra reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many companies finance loans so as to cover points such as supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that earnings margins are too tight. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be met or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new clients? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Certain variables such as new competition sprouting up around the area, road construction, and staff turnover can impact repeat customers and negatively affect future profits. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business regularly, the better the chance to construct a returning customer base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean house income effect future income potential?