Fully describe the business's activities?
Established 4 x 4 off-road rental business with a fleet of 15 x 4 x 4 vehicles, full equipped with camping tents and equipment, rented out mainly in Namibia with some rentals remaining in South Africa. Rentals are mostly to foreign clients.
How long has the business been established?
The business was established in 2013.
How does the business operate on a daily basis?
Clients inquire via the business web page and availability is confirmed and booked. Clients pay mostly via credit card and EFT and thereafter the vehicles are delivered to them.
How are the clients attracted to the business?
Clients are attracted to the business via the web page, Facebook and travel agents.
What Advertising/Marketing is carried out?
Most advertising is placed through Google ads.
What are the seasonal trends?
The business is at its busiest during the European school holidays from July to November.
How could the profitability of the business be improved?
Profits can be increased by purchasing further vehicles and opening an office in Namibia. Currently an additional charge of N$ 5000 is added to the rental fee as rentals are currently based from Capetown only. This extra cost covers the payment to drivers who drive back the vehicles from Namibia to Capetown. With this extra charge the daily rental fee is slightly higher than the rental fees charged by the local Namibian rental companies.
What is the total staff complement?
The total staff complement is 5.
Give a breakdown of staff/ functions/ length of service?
Manager Assistant Manager Mechanic General Repairs Delivery person
How involved is the Owner in running the business?
The owner is involved part-time in the running of the business.
What are the main assets of the business?
The main assets of the business are the 15 x fully equipped vehicles.
What is their overall condition?
All assets are in good condition.
Do any require repairing?
The vehicles are maintained on a regular basis.
How have they been valued ?
The vehicle assets have been valued by the owner using the Trans Union Value.
This business is family owned, therefore the service provided is personalized. Quality equipment is provided to ensure optimum relaxation and comfort whilst on vacation. The vehicles have low mileage and belong to the business. The business does not outsource any of its rentals to other companies.
This type of business is seasonal and does incur a high maintenance expense.
There are many opportunities when considering the expansion of this business: a larger fleet of vehicles, the opening of a Namibian office, purchasing a motor home fleet, customizing tours and generally obtaining a bigger footprint in Namibia and Botswana.
What is the reason for the sale?
The owner has another business interest.
Why is this a good business?
This is a medium sized business, well established with enormous growth potential.
What is the price plus stock and the profit?
The selling price of this business is N$ 4,995,000 below the total asset value, with an annual profit of N$ 900,000
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