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Motorhome and Camper Vans Sales Centre

New & Used Vehicles Franchise

Ref. AM153

Location : Central England

Asking Price : £595,000

Turnover : £6,201,130

Net Profit : £72,000

Gross Profit : £637,000

EBITDA : £165,000

Net Asset : £395,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Leasehold

Asking price includes:

Turnover for last financial year circa £6,201,130
Gross Profit circa £637,000
Net Profit circa £72,000
Adjusted EBITDA circa £165,000
Net Assets £395,000

Fully refurbished 27,000 square foot showroom and exhibition facility
Unrivalled central location
Significant investment to date in new site
Sage accounting and customer database
Experienced management team
Huge growth potential
Highly ranked website presence
Ongoing marketing strategy
Goodwill

Business Profile

Turner Butler are delighted to offer the market the opportuntiy to aquire a truly unique and forward thinking business within the Motorhome retail sales sector.

Established some 36 years ago, originally as a car franchise dealership, this dynamic business now operates in a niche market retailing and servicing prestigious New and Used Motorhomes and Campervans.

The company already has an established presence within the motorhome marketplace and sells a unique range of one of the most celebrated and longest established manufacturers of UK motorhomes.

This company has built upon its sterling franchise relationshship so much so that it has recently invested a significant ammount of capital in the total refurbishement of its 27,000 square feet indoor showroom to create an unrivalled stage for it to showcase and sell motorhomes and full aftersales packages to its customers located throughout the UK. This new exhibition and visitor centre is uinrivalled anywhere else in the UK and went “live” at the start of 2013. The business is now benefitting from this with strong growth year on year.

This investment has the full support of the motorhome manufacturer and this new investment allows the business to stock their complete range of motorhomes and accessories for customer to view, trial and purchase in very impressive surroundings.

Equipment:

The business utilises Sage accounting software that is attached to its own customer database. It also has its own impressive website which is fully optimised. Theses systems support the administrative functions of the business and are easily managed.

The business has its own workshop and valeting area on site which is suitably equipped with all the necessary tools and equipment to carry out its services.

Customer Service:

This is the area where this business really delivers. The new centre of excellence means the company can continue to provide full dealer sales provision from initial sale right though to ongoing aftercare, servicing, upgrades and ultimately part exchange when the time is right.

Scope of additional services includes finance, insurance, PDI, full handover and ongoing maintenance, accessories sales and fitting of all types of motorhome related products, such as TVs Solar panels and carry out all of the manufacturers technical and servicing programmes.

Key Strengths:

• Central UK location

• The Centre itself houses the complete range of the manufacturers models

• Ability to offer the complete package-part exchange, finance, servicing, technical advice

• Management team

• Franchise partnership support in terms of availability of vehicles

• Reputation

• Ongoing marketing strategy

• The brand

• Customer service- full turnkey solution including collection and delivery service

This new business model has been put in place so as to maximise both sales and profitability moving forward. It is expected to generate margins in the region of circa £6,500 per unit sold (conservative estimate) based on average selling price.

Financial profile:

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.

Turnover for the last financial year circa £6.2 Million. This equated to circa 155 units.

Forward orders placed (19) to the value of £1.4 Million

(Anticipated profit per vehicle sold is circa £5,000 new and £3,500 used).

Gross Profit circa £637,000 per annum

Adjusted EBITDA before considering absent directors’ costs circa £165,000

Adjusted Net Profit before considering absent directors’ costs circa £165,000
Net Assets £395,000 which includes stock/spare parts at hand circa £38,000.

The Asking Price of £595,000 is for the assets and goodwill of the business.
There will be a £ for £ adjustment to the asking price to reflect any rise or fall in the net asset position as at completion.

Further financial information is available subject to satisfactory completion of our confidentiality agreement.

Asking Price:

The asking price of £595,000 is for 100% of the issued capital of the company assuming Net Assets of £395,000 on completion. There will be a £ for £ adjustment to the asking price to reflect any rise or fall in the net asset position as at completion.

Advertising and Marketing:

The company has historically been active in outdoor sales and events programs over the past 4 years and has attended some 12 motorhome shows nationwide. Historically an average of 25 motorhomes have been transported and displayed at shows at a considerable cost. An average show cost with staffing was circa £10,000. The stock historically was taken from the display stock in the showroom.

However this is no longer the case as the manufacturer is willing to provide Motorhomes on a temporary loan at their expense to supplement the display, which helps maximise new Motorhomes on display at the show and helps to lower the stand costs. This is a key area as 60% of sales and leads have historically come from shows attended over the past 4 years. This allows the company to react quickly and efficiently to “hot” buyers.

The marketing of the exhibition centre will be assisted in a program of advertisements in the major journal/magazine for motorhomes within UK. Further links and advertisements will be placed throughout the year and dedicated links will be on the manufacturers website. SEO work will continue to develop and assist the marketing plan. The company also has its own TV channel that is ripe for development!

Growth and Expansion:

Whilst this business has been trading for many years the new model has only just been developed and put in place. The new showroom facility only went live in January 2013 so the opportunities for growth are very much there and already starting to bear fruit. The business has put in a level of infrastructure to cater for significant growth moving forward, both in terms of location and resource (including highly experienced staff who are already utilising the new sales tools they now have a their disposal).

The company is selling increasing numbers of motorhomes year on year (both new and used). It is expecting this increase in sales activity to continue and figures are expected to grow over the coming years. The ongoing marketing campaign, which comprises online activity, database development and high profile trade advertisements and show exhibitions from the manufacturer will continue to run to maximise exposure. In effect the Centre is the only one of its type in the UK for 52 weeks of the year.

The motorhome market is a relatively resilient market due to the “typical” profile of its core customer base and the company is confident that this business will continue to grow moving forward and generate impressive revenues.

Premises:

The business operates from ideal leasehold premises centrally located within the city centre. Site is very visible with very large frontage, excellent new signage and real kerb appeal. There is ample customer parking. Premises comprise circa 27,000 square feet of indoor showrooms, offices, workshops and parking as well as external car parking area. Current lease is a 8 year one. Current rent is circa £32,460 p.a. Rates are circa £17,413 p.a. All services connected.

As already mentioned the vendor has invested significantly in the site and it has been refurbished at considerable expense to provide the ultimate motorhome visitor centre experience to customers. It also has a very favourable lease.

Business Hours:

Monday  -  Sunday

10:00-16:00 - Winter

09:00-18:00 -  Summer

Employees:

The vendors have put in place an excellent management team that run the business on a day to day basis. Team includes a sales manager, an after sale manger and an accounts manager. Staff have many years experience within this sector and are a real asset of the business.

Support and Training:

The vendor will provide a comprehensive handover to ensure a seamless transition of ownership. However he does not believe this will be a lengthy process as the remaining management team have vast levels of experience within this business sector.

In addition to this the motorhome manufacturer themselves are fully committed to this venture and very keen for this business franchise to continue performing and will work with the new owners to ensure this is the case.

Reason for Sale:

This is a genuine retirement sale. The vendor has put the new model in place and believes it is ripe for a new owner with new levels of energy to drive it forward.

Looking for Finance ?

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 finance@turnerbutler.co.uk

Turner Butler Disclosure Statement

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk