Queenstown & Lakes; Loyal & Repeat Clients; Barriers to Entry
$250,000 - Lower South Island
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.
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