Business Overview

Highly respected, award winning, market leading Mid-Atlantic power boat dealership. Boat sales consist of premium quality saltwater offshore fishing boats. Founding owners have owned and operated the business for over 25 years. A strong management team has a stellar reputation with their customers, their brands, and the greater community. Average employee longevity is 15 years with some having over 25 years. The business also includes a service department, comprehensive marine parts and accessories, and seasonal outdoor boat storage. The business also operates a nine-slip marina with public-accessible boat ramp, and fuel dock.

Financial

  • Asking Price: $2,900,000
  • Cash Flow: $1,025,000
  • Gross Revenue: $13,500,000
  • EBITDA: $850,000
  • FF&E: $450,000
  • Inventory: $500,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:40,000
  • Lot Size:N/A
  • Total Number of Employees:30
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Company leases approximately 40,000 square feet of buildings consisting of a sales showroom, service facilities, several outbuildings on two separate but contiguous land parcels, and a nearby marina. Base rent for all parcels is $168,000 annually. Real estate is owned in a separate legal entity and can be purchased at market value.

Is Support & Training Included:

Owners have been absentee for more than 20 years. The business has been operated by a very strong management team. This team desires to remain in the same capacity with the business after the sale. Support and training for the buyer will be extensive, if desired.

Purpose For Selling:

Retirement and exit strategy.

Pros and Cons:

The business competes against other regional boat dealers representing other dealer lines. The business maintains exclusive boat dealerships for a very large regional territory. Competitive advantages include strength of inventory, very attractive sales showroom, reputation for customer-centric service, staff longevity, and owned boat ramp for in-water demonstrations.

Opportunities and Growth:

The business has a continued growth trend over the years. The line of credit floor plan has been recently expanded in anticipation of the manufacture making available to dealers in 2020 a new larger model in high demand.

Additional Info

The transaction does include inventory valued at $500,000, which is included in the asking price.

The company has 30 employees and is located in a building with disclosed square footage of 40,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell companies. However, the genuine reason and the one they say to you might be 2 totally different things. For instance, they might claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competition, recent decrease in earnings, or a variety of various other factors. This is why it is extremely essential that you not count entirely on a vendor's word, yet rather, make use of the seller's response together with your general due diligence. This will repaint an extra reasonable picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money in order to cover things like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that profit margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be met or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in brand-new customers? Often times, operating businesses have repeat customers, which create the core of their everyday profits. Particular aspects such as new competitors sprouting up around the area, roadway building and construction, and also employee turnover can affect repeat clients and also adversely influence future incomes. One crucial point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the better the chance to build a returning customer base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? Exactly how might the neighborhood average home income impact future income prospects?