Summary

This top motorcycle dealership has two great brands and very popular accessories shop. It is one of the top performers in the country. The owner is actively engaged in the business and this is a key element to anyone wishing to take over this dynamic and thriving business. With new lines and an exciting new addition to the dealership this business is poised to rise to the next level of growth in the coming months and years ahead.

1. History Background

Fully describe the business's activities

This is a popular motorcycle dealership that is a market leader not only in the area but in the South African market as a whole. The owner is actively involved with every aspect of the business and has been involved with various motorcycle activities and organising of events in the area. This has had the result of the brand being well recognised as the place to go for your one stop biking requirements.

How long has the business been established

The business has been in existance since 1999 and has grown from strength to strength despite dificult recent economic trading conditions and is out-performing many related dealerships.

How long has the owner had the business

The current owner has had the business going on four years.

2. Present Market

How does the business operate on a daily basis

The showroom incorporates all the latest motorcycles as well as a range of jet ski's, with full selection of accessories, riding gear and fashion wear. The focus is on quality. The workshop boasts the latest dynometer system with highly qualified technitians trained in all spheres of motorcycles enabling full backup and support on all sales.

How are the clients attracted to the business

Business is attracted through a combination of word of mouth, online marketing though the website, newsprint media and more importantly though community participation with sporting events, sponsorships and hosting bike runs and many more; combined with a fully stocked showroom ofering a one stop solution.

What Advertising/Marketing is carried out

Advertising incorporates print & online media and sponsorships.

What competition exists

While there is competition in the area none are on the scale of this business, none offer the range of products and services, and none can offer the workshop capabilities on offer by them.

3. Financial

Is the business VAT Registered

The business is VAT registered with full documentation available.

Are there up-to-date Management Accounts available

There are full up to date management accounts, as well as audited Balance Sheet and Income Statement.

What percentage of of the business is cash/credit

This is primarily a cash business with deals done though finance houses, and a facility is available onsite to facilitate the finance options.

How could the profitability of the business be improved

An additional new line has been added to the dealership and the full potential of this, the biggest brand in the world, is still be be realised.

5. Premises

When does the current lease end

The premises are owned by the seller and a favourable market related lease is negotiable.

What are the trading hours

Trading hours are Monday to Friday 8am to 5pm and Saturdays 8am to 1pm

6. Assets

Is a full asset list on file

A full asset listing is available with current market related values attached.

Are any items not included in the sale

Any items of a personal nature that might not be part of the sale will be listed separately.

What is their overall condition

The overall condition of all equipment is in a well maintaned and as new condition and regular maintenance and upgrades undertaken.

Do any require repairing

At this stage there is no major item that needs repairing done.

How have they been valued.

All assets have been valued by the owner at current market related values.

Are they presently insured

There is comprehensive insurance on the business.

7. S.W.O.T. Analysis

Strengths

Active owner participation, large one stop shop, fully stocked show room and well qualified and capable workshop staff.

Weaknesses

There are not any latently visible weaknesses of the business at this stage.

Opportunities

A new acquisition made recently is a major opportunity to take the business to the next level and is offering a huge opportunity to further cement the brand in the region.

Threats

A further weakening of the economy.

8. Reason For Sale

What is the reason for the sale

The owner has been offered an opportunity abroad and is considering his options available to him.

9. Conclusion

Why is this a good business

This is an excellent business since it is the dominent dealer in the region and has a national recognition and reputation as being a market leader in its field locally and nationally.

What is the price plus stock and the net profit

The asking price for the business including stock valued at R1.2m is R5.5m