Well Established, Profitable Multi-Brand Motorcycle Dealership

Consistent Average $9.4M in Sales and $1.2M SDE Includes Real Estate

Blind Summary Image

Specifications

 Price:
$3,650,000 with Real Estate
Revenue:
$9,353,623 (3-Year Avg)
Cash Flow:
$1,178,996 (3Yr Avg)
Location:
Northern California
Service Area:
Northern California
 Profit Margin:
12.4% (3-Year Avg)
 Employees:
16 FT Staff, 1 PT Owner
Reason for Sale:
The Seller Is Retiring
Goodwill:
54 Yr. Reputation
Year Established:  Owned by the founder since 1967
Services:  Sales, Service, Parts, Accessories, Finance, and Insurance
Products Offered:  Motorcycles, ATV’s, Utility Vehicles, Personal Watercraft, Power Products
Clients:  Enthusiasts, Racers, Hunters, Agriculture, Law Enforcement, & Government
Lease:  Real Estate Included, Seller Will Consider Lease W/WO Option to Purchase
Facility:  21,973 Square Feet
Personnel:  16 Full Time (owner works an average of 25 hours per week)
Software:  Lightspeed Dealer Management System
List Price Itemization:  Business Value: $2.1M  |  Real Estate Value: $1.55M  |  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

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
Profit Margin Chart

Revenue Breakdown

Revenue By Service Chart
Sales Cashflow Chart

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

Financial Table

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
Return Box

* 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.