Listing ID: 80678

Business Overview

This highly popular and financially successful outdoor recreational activity business in Hawaii’s “Garden Isle” of Kauai is being offered for sale on a completely turnkey basis including all assets, operating permits and all future booked reservations.

Since its founding over 10 years ago, this business has been consistently voted as one of Kauai’s best outdoor activities.

Investment highlights include:

• Excellent location, close to many thousands of customers
• State of the Art facilities and well-trained staff
• Excellent brand awareness and customer preferences
• Favorable long-term retail and operating leases
• Fully permitted by the County
• Consistent revenue growth and an excellent history of price increases.
• Excellent market position and they expect to see market share growth.
• Financial Performance in 2019, the last full year before Covid:
o Revenues: $1,259,000
o Owner’s Profits (SDE): $300,100
• Market Recovery. The Kauai Tourism market, after a tough Covid period, is now experiencing very fast recovery in demand growth, for example, the number of tourists in July 2021 was back to over 90% of the July 2019 level and is expected to recover.

Given the excellent market position and operating location, proven profitability, and opportunities to increase sales and market share going forward, this business offers a great opportunity for the right buyer to build upon this already successful business operation.

To receive a detailed 50 plus page Confidential Business Profile with full business information and tax return-based financials, please contact us for a Non-Disclosure Agreement.

Financial

  • Asking Price: $900,000
  • Cash Flow: $300,195
  • Gross Revenue: $1,259,140
  • EBITDA: N/A
  • FF&E: $1,200,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,235
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Two Leased Locations (Retail and Operations) Monthly Rent: $19,084 per month; $229,000 per year for both locations Sq. Ft.: 1,235 sq. ft. retail and multiple acres for the outdoor activity area. Lease Expiration Date: 2030

Is Support & Training Included:

Two weeks

Purpose For Selling:

Re-invest in new business opportunities

Pros and Cons:

The number of competitors declined during Covid and this Business expects to pick up a material increase in market share.

Opportunities and Growth:

Growth thru market share expansion and increased effort on sales and marketing.

Additional Info

The business was established in 2010, making the business 12 years old.

The company has 10 employees and resides in a building with disclosed square footage of 1,235 sq ft.
The building is leased by the business for $19,084 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. Nevertheless, the true reason vs the one they say to you might be 2 completely different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or an array of various other reasons. This is why it is really essential that you not depend totally on a vendor's word, but instead, use the seller's response combined with your general due diligence. This will repaint a much more sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies take out loans so as to cover things such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that revenue margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in new consumers? Many times, operating businesses have repeat customers, which form the core of their everyday profits. Particular factors such as brand-new competition sprouting up around the area, road construction, and personnel turnover can affect repeat consumers and also adversely impact future earnings. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the greater the possibility to develop a returning client base. A final idea is the basic area demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the neighborhood mean home earnings impact future earnings prospects?