Van Car &Truck Self Drive Hire Business For Sale

Franchise terms

Not a franchise.

Business description

No Premium. Established 25 Years. Strong Local Brand Name. OnLine
Bookings Website. Training Can Be Given.
The company operates an extensive fleet of late registered cars from Panda`s Focus, Convertibles, People Carriers, 4 x 4's / Vans from Caddy : Transit : VW Transporter : Lutons : 7.5 Tons : Minibuses. Approximately 85% of the vehicles are owned with approximately 15% leased - the lease vehicles are considered very useful in the busy 6 month summer peak and certain types are cost effective on the lease price paid.

SALE DETAILS - This highly successful business is being sold for no premium payable. This has been achieved using the following business sales model.
All rental revenue is paid into a revenue account. Clients deposits / vehicle sales / other activities would have separate accounts. As soon as the revenue becomes cleared funds in the revenues account a percentage of the all inclusive rental figure (basically a percentage of the money received into that bank account) is paid to the seller by automated bank transfer on a daily basis. The remaining percentage is retained by the buyer. The seller has calculated a percentage payable which has been carefully calculated to enable the buyer to achieve a worthwhile profit and growth. A bare minimum would apply over measured over 6 months to allow for seasonal changes and would be set at the lowest possible figure from 2007 less 20% so would be a safety net that would not apply under normal circumstances.
The benefits of this aquisition method are as follows :-
1. No capital outlay for the good-will.
2. Payments are linked to turnover so lower periods mean lower payments.
3. The seller has a vested interest in the continued success of the company.
4. Optional break clauses can be built into the sale terms for remuneration. The buyer has total flexibility options.

BASIC FINANCIAL NOTES FOR PROSPECTIVE PURCHASERS.
Any prospective purchaser must be aware that the entire stock of around 85 - 125 vehicles (depending on time of year) will need to transferred over to the finance company of there choice. If this initially represents a problem the seller may consider help or a transitional change over of assets.
The purchaser may also wish to consider short term lease options which many rental companies thrive on and of course this option frees up capital.
To discuss the options on this business together with an in detail meeting with the seller please email in confidence.
This business sale is considered to be especially attractive as no premium is being requested although purchasers should be fully able to achieve funding (have at least a high credit rating or funds available or assets to the value of) to take over the assets and liabilities (the extensive stock of vehicles) at current valuations by means of commercial finance (the seller can advise on this and help in these areas if needs be).

Property information

Property:

Leasehold

Lease terms:

The business comes with a new 5 -10 year lease with no premium payable.
Rent payable will be commencing at £23,500 per annum.
Rent to increase annually by the Halifax standard variable published mortgage rate at date of increase year on year.

Living accommodation:

No living accommodation.

Location:

Central city location with extensive secure parking.

Other information

Expansion potential:

2008 so far is showing sales increased turnover on cash rental sales period 1/1/08 to 28/3/08 year on year (2007 to 2008) increase of 17.8%
Having operated the company for 25 years it would appear downturns in the economy (as now) benefit this industry as it is believed clients wish to rent instead of purchase for any excess vehicle use they may need.
The website, although very successful needs further development.
Other sites could easily be opened using the existing website with small modifications to multi site.
The strong brand name would lend itself to additional sites.
On present growth the immediate next 3 years are looking very attractive.

Competition / Market:

The business has been extremely well established and well known in the city for 25 years. Competition has `come and gone` over that period. It is considered that the business currently has 1 low cost competitor very close by, but due to that competitor specialising is old high mileage low standard vehicles they are considered to be pitched within a different market place. 4 other competitors are within distance to affect sales, but this has been the situation for 25 years and have all changed ownerships many times over that period.

Support & training:

It is apparent that a prospective takeover may involve a non experienced suitor. With this in mind the seller is prepared to offer full training and expertise to the ingoing operators. Training (if required) would be supplied on a consultancy basis.

Reasons for selling:

2008 is the 25th year and the vendor feels its a good time to concentrate on his existing large property interests.

Trading hours:

8am to 6pm Mon-Fridays : 8am to 5pm Saturdays : 9am to 12 noon Sundays.

Financing available:

The buyer would be taking over all of the companies assetts and liabilities. In the event that funding is difficult initially the seller may be prepared to assist in this area.

Furniture / Fixtures value:

£20,000

Contact the seller

For more information about this business for sale, click the Contact Seller button.

Please only contact this seller if you have a GENUINE interest in buying this business. DO NOT MAKE CONTACT if you wish to sell your third party goods or services as you will be blocked from this site.