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BUSINESS REFERENCE : AM069 / RightBiz AM069 -SPAIN-£ 495,000-DEALER IN NEW & USED LUXURY POWERBOATS AND YACHTS | | | | | | Official Dealer in New & Used Luxury Powerboats and Yachts With Substantial Income From Ongoing Service and After Sales Ref.AM069 Location Spain Asking Price £ 495,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Motor & Transport | | TRADE TYPE: | Motor Trimmers | | SALE: | Agent Sale | LEASEHOLD: | £495000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established in 1990, this business is a specialist in the sale and service of power boats and sailing yachts. Situated in an ideal location, this business is firmly established as one of the leading companies in its sector catering for the English and other Europeans.
This business offers a wide range of powerboats, luxury boats and yachts for sale. But sales are just part of the full range of services this business offers. It is very much a one stop shop, catering for all a boat owner’s needs including arranging berthing facilities throughout Spain and full service and maintenance - scheduled engine and gearbox servicing, hull maintenance and cleaning and guardinage services, gel coat repairs and polishing as well as insurance and even boat handling tuition and RYA course training through an associated Sea school!
This business is an exclusive dealer within its area for some of the biggest brands in the sector able to provide new models with a full warranty and after sales service, working very closely with the manufacturers. Prices range from as little as €50,000 to several million Euros. The business also offers a wide range of pre-owned powerboats from its brokerage listings, often arranging trade in deals – often brokering a customer’s current boat whilst supplying them with a new one.
Perhaps the cornerstone to the success of the business has been its very high levels of customer service. The business has an excellent reputation for honesty and integrity and as a result has an established, loyal Client base particularly in relation to service and maintenance and a high profile presence in Spain, renowned for its highly skilled and knowledgeable team which primarily comprises the current Owner and his PA and a full time Engineer to assist with preparation and commissioning. All other services are sub-contracted to a very small portfolio of dedicated and highly talented, tried and trusted technicians all of which have been working with this business for a number of years.
This is very much a business with a very desirable lifestyle attached, working with very powerful ‘machines’ on the sea, in an excellent climate – the part of Spain in which this business is based has on average 330 days of sunshine a year. Run as it is currently it is also a very profitable business. Turnover, which comes mainly from boat sales, for the year ending November 2007 was approximately £400,000 generating gross margins of 36% and net operating profits of over £130,000. As such it represents an excellent opportunity for a buyer looking to move out to Spain, or alternatively an existing operator in the marketplace looking to establish an excellent foothold in a consistently performing market by acquiring a very profitable major, regional player.
Customer service:
This business has an excellent reputation for honesty and integrity from which its customers take an enormous amount of confidence in its capabilities in service and maintenance and delivery times for new and used boat sales. All customers are kept fully aware of progress in relation to their particular ‘project’ and are invited to enquire about any aspect of the work being undertaken on their boat or the specification of a new boat or delivery date, for example, at any time. This combined with the manifest quality and luxury of the end product is primarily responsible for the business retaining many customers and maintaining its reputation which has led to the acquisition of new customers on an on-going basis.
Key strengths:
This is a very well established business which has maintained a consistent presence in its marketplace since 1990. Consequently it benefits from high levels of customer awareness. It is a very profitable business with the potential for significant profit growth - the sale of just one boat at the right price level can have a significant impact on profitability. Having dealt in used boats for a number of years it is a tried, tested and trusted outlet with an excellent reputation for honesty and integrity. With a good level of boat sales throughout the year, the business enjoys on-going growth in warranty and on-going service and maintenance income as owners who have trusted this business to deliver their dream boat return for after sales service. The loyal customer base this business has now built up for service and maintenance ensures that all the day-to-day running costs of the business have easily been met.
This business has very strong and well established links with each of the manufacturers that it represents and a particularly strong relationship with one particular distributor based in Spain mainland with which it works very closely and as a result has become synonymous with one of the biggest brands in its sector. It is in the unique situation of being the only outlet dealing in the boats of UK manufacturers.
Perhaps the greatest strength of the business however is the lifestyle that goes with it – working in the very exciting sector – the marine industry, with very powerful and expensive boats in an all year round warm climate.
Key opportunities:
With a strong demand for the products of this business, combined with a capacity to increase turnover, a new owner contributing fresh ideas, drive and enthusiasm will have every advantage of building on an excellent platform.
The area in which this business is based is enjoying excellent levels of economic growth and development increasingly attracting volumes of high net worth individuals – exactly the profile of people drawn to the activities of this business. One of the major developments locally is a new Marina due for completion within the next couple of years which will have a considerable positive impact on the turnover and profitability of this business.
Further afield there is ample scope for this business to leverage its excellent reputation by opening additional offices on the Canary Islands for example. And with its excellent trade relationships there are additional opportunities to work much closer together to take full advantage of opportunities as and when they arise.
Growth and expansion:
The current market for this business is competitive but growing and is forecast in the near and longer term for significant growth. With its exclusivity as dealers in certain brands within its territory the business is well positioned to take maximum advantage of this growth as it occurs.
Premises:
The business operates from very well suited office premises prominently situated in the Marina of one of Spain’s most popular resorts – adjacent to the entrance road to the Marina itself. Approximately 60 square metres in all, open plan, incorporating staff work stations, a reception desk, sofa and comfortable seating area for customers, the office, based on the first floor of the Commercial Centre also features a selection of boats for sale in the windows.
Owned by the business the property was recently valued at €150,000 and is available in addition to the Asking price of £600,000. Rates are just €200 per annum.
The business also rents additional storage space within the boatyard at the Marina totalling a further 32 square metres. Used for the tools and materials required for servicing and maintaining boats the premises are rented at a cost of €250 per month.
Marketing and advertising:
As exclusive dealers within its territory for a number of major brands, a large proportion of marketing activity is undertaken in conjunction with the major manufacturers – listings as main distributors in the major trade press publications, working on their stands at boat shows in both the UK and Spain for example.
The business also has a very high profile office in one of Spain’s most prestigious marinas and where the vast majority of its key target audience is located. The business also has a very well designed, informative and easy to navigate website that performs very well in all the major search engines for all appropriate search topics.
By far the most cost effective form of marketing however is the significant word of mouth recommendation the business enjoys, testimony to its long standing presence in the marketplace and its excellent reputation.
Financial profile:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Turnover for the financial year ending 30th November 2007 was approximately £402,700 generating gross profits of almost £145,000 and a pre-tax net operating profit of £130,200.
The Asking Price is for the sale of the business on a cash free, debt free basis.
Employees:
The Owner is responsible for the day-to-day running of the business and occasionally gets directly involved in boat maintenance. The business also employs a secretary running the main office and a full-time engineer. The business sub contracts mechanical and electrical works as appropriate to a small portfolio of longstanding, tried and tested resources
Training and Handover:
The current Owner will be pleased to assist in the handover of the business to ensure a smooth transfer to new ownership.
Reason for sale:
Having been involved in the business for a number of years the current Owner feels the time is right to pass it on to new Owners, to build on the excellent foundations already laid and fully realize the full potential there undoubtedly exists in the business. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | AM069 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
