Very well established, profitable and prominent, motorcycle service & performance tuning centre

Very well established, profitable and prominent, motorcycle service & performance tuning centre

Class 1 & 2 MOT station, suspension service centre, tyre fitting centre, engineering services and retailer for 
bike parts & accessories

One of the UK’s leading motorcycle race tuning companies

Location: Somerset

Asking price: £150,000 plus assets

Turnover in excess of £516,000 per annum

Gross Profit circa £124,000

Adj. EBITDA of circa £80,000 (before drawings)

Net Assets of circa £75,000

Asking Price includes:

Workshop, storage and office facilities

Established over 20 years

Excellent customer base – local, national & international, with much repeat business

Skilled and loyal staff

Stock at Valuation

 

Business Profile:

This very well-known and profitable business formed in the South West of England by the Vendor over 28 years ago, since that time, it has significantly grown and is well known nationally for its services and variety of products and great value for money.  The business currently offers the following services:

 

·         Motorcycle Service

·         Tyre fitting centre

·         Fault finding & diagnostics

·         Class 1&2 MOT testing station

·         Authorised suspension service centre

·         Race tuning and track & race machine preparation

·         Dyno tuning services

·         Engineering services

·         Retailer of bike parts & accessories

·         Good web presence & additional online store

The company has secured area relationships with numerous branded companies, whereby further accounts in the area would not be granted.

The aims of the business are simple, to ensure that every customer who purchases from them is 100% satisfied with their service, ensuring that they will return, should the need ever arise to maintain a client’s motorcycle to the highest race-tuned standards or replace products. The vendor and his staff are proud of the fact that the best advert for the company is word of mouth, and in this time of increased competition strives to maintain its offer of personal and attentive first class service.  Quality of product, personal service and after sales care has been the key to the success of the business and something the current owner takes particular pride.  All customers are treated individually.

They are proud suppliers of all major manufacturers and brands associated with National and International Motorcycle Sport.

No small part in the ability of this business to grow and sustain its profitability is due to the quality of its people. The vendor is a Motorcycle Motorsport enthusiastic & successful engineer & retailer and he is supported by equally motivated, highly skilled and knowledgeable staff.

This excellent business is a turn-key operation that is ready to go.

Customer Service:

Clients include private individuals requiring more usual MOT, servicing and parts needs or the more specialised race-tuning and preparation services.

Excellent customer service is developed from the strong personal commitment and enthusiasm of the vendor, which also runs through the staff and has become very much the company focus. The professional team considers simply that happy customers will come back or refer the company to new customers and on this basis it has maintained levels of service quality intended to best ensure this. 

 

Key Strengths:

·         Over 24 years successful trading

·         Motivated staff

·         Enviable reputation

·         Well stocked parts and accessories

·         Referrals

·         Full managed turnkey operation

• Professional, attention to detail, reliable in the extreme
• Well established & internationally well known

Key Opportunities:

The business has enjoyed steady growth since inception and is well positioned to take maximum advantage of future growth as it occurs.

There is a significant opportunity for further increase in margin which could be achieved by a simple increase in rates and charges, something that the current client-base can support and has been resisted by the current vendor and by developing the potential that lies within web based retail activities.

Adopting a more pro-active approach to advertising and marketing could greatly improve turnover and profits. Being a retailer with such a reputation among the highly technically aware customer base of this specialist sport, is a definite advantage over competition.

Advertising and Marketing:

The business currently undertakes a limited level of advertising via motorsport magazines and has a strong YouTube presence. The company has a growing social media following.  There are also excellent opportunities to increase this, and to further develop the website to market the business more aggressively.

 

A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation.

Employees:

The vendors work within the business full time and employs the following personnel:

1x Full Time Race Technician

1x Full Time Race support/service technician.

1x Part Time Office Manager

1x Part Time Business Developer

1x Part Time Intern

Premises:

The premises are Leasehold and currently on a 10 year lease agreement with 12 months remaining.

Annual rent paid circa £15,000 and rates of circa £8,300 per annum.

The linked building comprises 2x Commercial Units of circa 4,000 square feet including:

Offices

Workshop

Storage & Warehouse

Mezzanine level

The business is situated in the centre of a busy and very established trading estate in South West England, close to main roads and M4 motorway. The premises are very secure with a monitored alarm system, bars and shutters and a rollover shutters to the workshop areas.

Business Hours:

8:45am - 5:30pm Monday – Friday

9:00am - 1:00pm Saturday

Financial Information:

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 in excess of £516,000 per annum

Gross Profit circa £124,000

Adj. EBITDA of circa £80,000 (before drawings)

Net Assets of circa £75,000

The business currently achieves annual turnover of circa £516,000 per annum with Net Profits of circa £80,000. Current stock plus fixtures, fittings and delivery vehicle assets are included within the asking price and have an estimated value of circa £40,000.

Reason for Sale:

After many years establishing, managing and consolidating this business the vendors have decided that now is the right time to consider other options.

Support and Training:

The owners will provide all necessary training and handover to allow continuity of trading and a smooth transition of ownership.

Asking Price:

The Asking Price is £150,000 plus Net Assets is for 100% of the issued capital of the company based on Net Assets being circa £75,000 on completion (calculated on a zero cash-zero debt basis). There will be a £ for £ adjustment to the asking price to reflect any rise or fall in this net asset position as at completion.