Premier Motorcycle Dealership & Service Centre
Location : South East
Asking Price : £875,000
Turnover : £2,015,000
Net Profit : £103,000
Gross Profit : £249,000
EBITDA : Undeclared
Net Asset : £750,000
Premises : Leasehold
Confidentially offered for sale
Asking price includes:
Turnover circa £2,015,000 per annum
Gross profit circa £249,000
Adjusted Net Profit circa £103,000
Net Assets £421000
44 years of trading
Major dealership for prestigious brand
Opportunity to expand existing premises
Fully equipped workshop
Clothing and accessories
This Premier Motorcycle Dealership & Service Centre was established in 1971 and has been under the same ownership since inception. Located at its current premises for twenty three years, the business has built an excellent reputation and is known throughout the south east for its relationship with one of the world’s most prestigious motorcycle brands.
This major brand has been established for decades and has a loyal and almost fanatical following.
There is a large display of both new and pre owned vehicles at this dealership, which are superbly presented in the extensive modern purpose built showroom. The showroom itself is spread over two floors with the top floor also being used for the presentation of motorcycles plus a wide range of clothing and accessories.
A professionally equipped workshop provides service facilities and is located adjacent to the showroom. The maintenance division is responsible for approximately 15% of the business revenue.
The company has a modern website that allows users to view features and specifications of many of the products on offer including new and pre owned vehicles.
This is a highly profitable, thriving business with many years of combined staff experience. Over the years of trading it has developed a superb reputation that attracts many customers, with approximately 30% being repeat clients.
The workshop is fully equipped with many tools and parts needed to facilitate a busy and lucrative part of the business. The showroom has been well designed and this has created a prestigious and upmarket image. All tools, fixtures and fittings are included in the sale.
The owner and his staff are highly experienced. This knowledge of the motorcycle market is a major factor in the success of the company. Professional advice is a big draw that brings loyal customers from all over the south east of England. Customers are dedicated to their favourite brand, this loyalty is a big advantage for the company who keep in touch with its customers’ requirements and ensure all the latest motorcycle models and accessories are kept in stock.
This company’s close association with the leading brand manufacturer is a big draw, customers are kept up to date with new models of motorcycles as they are launched.
As a result of this strong business relationship with the manufacturer the company has a large exclusive area with little competition in the immediate area.
The company is situated on an excellent corner plot location, positioned on a main road and sited on a large business estate. With high visibility and easy access the premises are easy to find and are in close proximity to motorway links.
Levels of customer satisfaction are very high and a high percentage of business is from repeat clients, which in turn leads to new referrals. It is clear that the quality of the product and the experience of the staff add up to a highly successful formula.
As a company that has been established and successful for circa 44 years, it could seem difficult to see how things could be improved. However, there are two obvious options that should be considered. Firstly, there is space on this large corner plot to extend the building. Increasing the size of the premises would allow for more stock to be held at the showroom, which could allow for more brands to be sold and possibly a more diverse type of product to be made available. Larger premises could also be used to expand the servicing part of the business, which often has to turn business away. Secondly the business is currently trading five days a week, extending the opening hours to six or even seven days a week are both obvious routes that would have an immediate positive impact on the business.
The leading brand manufacturer has disclosed to the owner that over the next 3- 4 years they are intending to increase their model range by some 20% and are expecting that dealerships will increase their turnover by a similar percentage. Dealerships have been asked to have the facilities in place in order to cope with this expansion.
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business has a successful financial history that has a positive effect on the business in terms of positioning itself at the top end of the market, by holding high levels of stock and by ensuring that the showroom is modern. Current turnover is circa £2,015,000. Gross profit is running at circa £249,000 and Adjusted EBITDA before the owner’s drawings are currently circa £103,000.
The Net Assets of the company assuming no cash and no debt are c£421,000 although the premises’ fit-out has been written down in the accounts to c£6,000 even though it would costs over £200,000 to replace.
The business advertises in a number of trade newspapers and magazines as well as on specialist websites which has helped it to acquire a high profile status in many parts of the country. Having its own professional website also provides a channel of communication with clients and potential clients anywhere in the U.K. Occasionally direct mailing is used to contact customers on its substantial database.
The property is circa 4000 sq.ft. in total with offices situated in one corner of the showroom and the workshop adjoining the premises. Additionally there is a mezzanine floor, which provides an additional circa 3,000 sq ft of showroom and is used to present all clothing, accessories and further motorcycles.
Having everything under one roof certainly improves the efficiency of the company.
The showroom is ideally positioned on a corner plot at the entrance to a large business park. There is ample car parking available on site dedicated to both staff and customers.
The owner has also acquired the adjoining building, which offers an additional circa 4000 sq. ft. These premises are currently being used for additional storage but could easily be used as an extra showroom accessed from the existing one. The unused parts of this building are sub-let and bring in c£20,000 of rental income.
Tuesday-Saturday : 09:00 am - 18:00 pm.
The premises are protected by a Redcar Alarm System.
Currently six full time members of staff are employed
• 1 Sales Executive
• 1 Secretary
• 1 Parts Manager
• 3 Technicians
The current owner is happy to provide a full handover if required to ensure continuity of trading.
The owner is looking to retire after 44 successful years in this business.
If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at email@example.com
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