Fully describe the business's activities?
Established for more than 27 years, this is a highly profitable 4 x 4 car rental business. As an additional service to its clients it also offers the option to rent with the car rental - basic to fully equipped camping equipment. Their main clients are foreign tourists from Europe.
How long has the business been established?
This business was established in 1992 by the existing owner.
How does the business operate on a daily basis?
The owner and managers open the business daily. Bookings are secured for self drive 4 x 4 rentals and additional camping equipment requirements. The in-house workshop repairs and maintains vehicles and camping equipment daily, ensuring that there is a constant flow of available ready to hire vehicles and equipment. It is company policy to maintain a fully stocked spares store in the workshop to ensure 24 hour turn-around.
How are the clients attracted to the business?
This business being established for almost 30 years, offers its clients exceptional personalized service, guaranteed well maintained, reliable vehicles and equipment giving them a turn around of many repeat clients. It offers transportation services for its clients from the airport and back. In addition it has its own fueling station for optimal customer service.
What Advertising/Marketing is carried out?
The business has a user friendly website and has five highly sophisticated internet domains to source clients.
What competition exists?
There are many competitor car rental businesses, however this is one of the larger privately owned car rental businesses in Namibia.
What are the seasonal trends?
Peak season is between June and the end of November. For the past few years this business has operated at a 100% capacity in that period. During low season, the occupancy drops to 50%.
Is the business VAT Registered?
Yes, this business is VAT registered.
What VAT documentation is on file?
All VAT documentation is available on file to buyers during the due diligence stage.
Are there up-to-date Management Accounts available?
Yes, there are up-to-date management accounts which are available to buyers in the due diligence stage.
What Balance Sheet and Income Statements are available?
Yes ,there are Balance Sheets and Income Statements which are available to buyers in the due diligence stage.
What percentage of the business is cash/credit?
No credit is available therefore there is no debtors book. All reservations are prepaid.
How could the profitability of the business be improved?
The businesses profitability can be improved by increasing the fleet. There are a many different options to build up relationships with other partners in the tourism sectors such as lodges and guided tours.
What is the total staff complement?
The total staff compliment is 11 employees.
Give a breakdown of staff/ functions/ length of service?
This is available to serious buyers during the due diligence stage.
Are they on contract?
All employees are on contract.
Do any have management potential?
Yes, there is currently two employees with management potential.
How involved is the Owner in running the business?
The owner is involved in the business on a daily basis however this role in the business can easily be past over to a trained manager.
When does the current lease end?
There is an option to purchase the premises from this business owner. Further details pertaining to this can be discussed with serious buyers during the due diligence stage. The lease is renewable on purchase of this business and the lease agreement terms can be negotiated.
What are the trading hours?
The trading hours of this business are 5 days a week from 07h30 to 17h00. In addition the business is open on weekends and public holidays on an hourly basis and operates with skeleton staff .
What is the square meters of the business?
The total m2 under roof is 1177m2
What are the main assets of the business?
The main assets of the business are the vehicles and the fully stocked spares store.
Are any items not included in the sale?
The itemized machinery does not include the two tool trolleys with their contents as well as no specialized tools. A list of these items will be provided to serious buyers during the due diligence stage.
What is their overall condition?
All assets are maintained in-house and kept in immaculate condition.
Which assets are on lease/HP and with whom?
There are no assets on lease or HP.
This business only operates on individual bookings, the majority of it clients return and it does not need to operate through tour operators who request a high commission structure. It also runs a fully equipped workshop which maintains and repairs all vehicles and equipment in-house, keeping the costs minimal.
The weaknesses of this business are the unforeseen damages to vehicles and equipment. In order to keep the flow of 100 % occupancy there is constant pressure during peak seasons to keep vehicles out the workshop and fully operational.
Global changes, crime rate and drought are the only threats foreseen in this business.
What is the reason for the sale?
The owner has owned this business for almost 30 years and wants to retire.
Why is this a good business?
Tourism is a healthy trading sector with an annual increase during the past years and still with an increase of 8 -10% annual..
What is the price plus stock and the profit?
This business is selling at N$ 9,265,000.00. The net profit of the business before tax is N$ 3,507,000.00
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