Well Established, Profitable Multi-Brand Motorcycle Dealership
Consistent Average $9.4M in Sales and $1.2M SDE Includes Real Estate
Specifications
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 Price: $3,650,000 with Real Estate |
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Revenue: $9,353,623 (3-Year Avg) |
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Cash Flow: $1,178,996 (3Yr Avg) |
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Location: Northern California |
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Service Area: Northern California |
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 Profit Margin: 12.4% (3-Year Avg) |
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 Employees: 16 FT Staff, 1 PT Owner |
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Reason for Sale: The Seller Is Retiring |
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Goodwill: 54 Yr. Reputation |
| Year Established:Â | Owned by the founder since 1967 |
| Services:Â | Sales, Service, Parts, Accessories, Finance, and Insurance |
| Products Offered: | Motorcycles, ATV’s, Utility Vehicles, Personal Watercraft, Power Products |
| Clients:Â | Enthusiasts, Racers, Hunters, Agriculture, Law Enforcement, & Government |
| Lease:Â | Real Estate Included, Seller Will Consider Lease W/WO Option to Purchase |
| Facility:Â | 21,973 Square Feet |
| Personnel:Â | 16 Full Time (owner works an average of 25 hours per week) |
| Software:Â | Lightspeed Dealer Management System |
| List Price Itemization:Â | Business Value: $2.1MÂ |Â Real Estate Value: $1.55MÂ |Â Total Value: $3.65M |
The presented opportunity is for one of northern California’s most well established and successful powersports dealerships, serving the California powersports community for over 50 years.
The business represents several of the most desired brands in the marketplace. Customer base includes most of California, drawn by the selection of motorcycles, scooters, all-terrain vehicles (ATV’s), side-by-side utility vehicles, personal watercraft, parts, accessories, apparel, service, and more.
The unique and desirable location of this dealership is one of the many features that make it so attractive. It is truly in the middle of the west-coast outdoor-enthusiast community’s playground.
- SBA lender pre-approved
- Turn-key operation
- Strong customer base
- Great team of employees
- Semi-Absentee Ownership
Value Proposition
- Includes Real Estate
- 54 Years Goodwill
- Priced Below Market Value For Quick Sale
- $2,100,000 Business Sale Price
- $1,550,000 Real Estate Sale Price
- Steady Demand For Products & Services
- Desirable Brands Represented
- Pandemic Resistant
Revenue Breakdown
Financial Highlights
- 6-30-22 Fiscal Year-End Revenue $10,357,739
- 6-30-22 Fiscal Year-End SDE $1,392,167
- Profit margins above industry standard
- Recent upgrades to facility
Cashflow Analysis
Asking Price
The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.
For this business, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 1.78x, below the market in favor of the buyer.
*Note: $2,100,000 Price for Business, $1,550,000 Price for Real Estate
Funding Example
Purchase Price: $3,650,000
20% Buyer Down Payment
$730,000
Buyer’s Equity
80% Bank Loan
$2,920,000
10-Yearterm at a rate of 6.50% = Monthly loan payment of $33,156
- Cash Flow (SDE in 2022): $$1,392,167
- Annual Payment to Bank: $380,280
- Net Profit (After Expenses and loan payment): $1,011,887
* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.