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Tourism

Queenstown & Lakes; Loyal & Repeat Clients; Barriers to Entry

$250,000 - Lower South Island

#291018

detail

This business currently generates around $550k +GST of sales with around 25% dropping to the bottom line for an owner operator (who only really works an FTE role for 6-8 months of the year). Trading is increasing and there remains scope for further improvement. A working owner is supported by employed Tour Leaders and a part time administrator.

The brand is well known, highly regarded and has enjoyed 'first mover advantage' with its core trip. Additional tours have been added and are growing strongly. The business is seasonal with only limited owner input required in the autumn and winter seasons, and is strongly cashflow positive. The diverse nature of the trips offered together with their absolute appeal to the target market reinforces the fun, scenic splendor and exercise oriented nature of the business.

There are around 30 fully support cycle tours per season, with up to 10 clients per tour. Tour leadership is provided by willing employees who thrive with the nature of the activities being undertaken, and the reputation of this business is such that acquiring Tour Leasers has not been an issue.

Competitive Advantage

Ensured by way of:

  • 'First mover' advantage ensuring continued availability of limited accommodation resources
  • Defined activities with high brand equity and returning client loyalty
  • Excellent condition of Plant & Equipment (~$86k book value) that is absolutely 'fit for purpose'
  • Exceptional processes & systems, ensuring a seamless transition and comprehensive client experience

The current owner is seldom required to be a Tour Leader and their role is primarily sales and admin based. This role is very part time in the 'off season', but increasingly busy during the spring & summer months. An enjoyment of outdoor pursuits would add to their job satisfaction, but the key attributes needed are a love for the resources the region has to offer, and a passion to ensure clients are 100% satisfied. The systems inherent within the business ensure that both the owner and staff remain hugely productive and ensure they can optimise their clients' experience.

This business has been incredibly well structured and provides an established platform for growth; with the added bonus of being cashflow positive from Day 1.

Net Surplus $145,450 EBPITD

Contact: Damien Fahey
Office: Christchurch

Confidentiality Agreement for Business Reference 291018, Broker Name Damien Fahey

Between Tabak Business Sales and the Interested Party.  The Interested Party must be an individual's name, NOT a company name.

In consideration of Tabak Business Sales (being any or all of Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) and their respective business brokers) entering into discussions relating to the possible acquisition of the assets or shares of any business(es) presented to me by Tabak Business Sales and specifically the business referenced above, I/We hereby agree and undertake as follows:

  1. To treat as totally confidential the identity of the business(es) disclosed to me and any details as to its operation or financial accounts;
  2. I acknowledge that the financial records, customer and supplier details and other information relating to the business to be disclosed to me shall at all times remain the sole and exclusive property of the Vendor and that such information is of competitive value and of a confidential nature and that loss or damage would be sustained by the Vendor if such information should be used or divulged by me for any purpose other than the evaluation of the purchase of the business or should it become into the possession of an unauthorised third party;
  3. Not to disclose the identity or any details of the operation or financial accounts to any third party (except my accountant or legal advisor who shall agree to respect this requirement for confidentiality) unless expressly authorised in writing by the Vendor or by Tabak Business Sales;
  4. Not to make an approach to the Vendor of any business disclosed to me by Tabak Business Sales, or the business' staff, customers or suppliers without prior arrangement with Tabak Business Sales and to refer all queries through Tabak Business Sales;
  5. We acknowledge that Tabak Business Sales is the introducing agent, and that all offers and deposits for the business, shares or property will be conducted through that office;
  6. If, I as a potential buyer breach clause 4 of this agreement and buy directly or indirectly this business from the Vendor of the business quoted then I the buyer will be responsible for any loss of commission due to Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) as the case may be;
  7. If, I as a potential buyer breach clause 1, 2 or 3 of this agreement I undertake to indemnify Tabak Business Sales against any actions, proceedings, costs, claims, demands or liabilities which you may suffer in consequence of that breach;
  8. That all information is received for no other purpose than the evaluation of the investment potential of the business;
  9. If I decide not to proceed with the investment, I agree to immediately return to Tabak Business Sales all written information supplied by it and retain no copies and to delete any electronic records including all emails and attachments relating to the business(es);
  10. Acceptance by Electronic Mail: Execution of this Agreement and transmission between the parties by electronic signature and email response each to the other or their representative will constitute offer and acceptance and satisfy the requirements of Section 5 of the Electronic Transactions Act 2002.

Before proceeding with this Confidentiality Agreement, it is recommended that any prospective purchaser

  1. seeks legal advice.
  2. may or may need to seek technical or other advice and information.
  3. review Tabak Business Sales’ internal process in relation to any complaints.  A copy of these can be found here.
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