ACQUISITION OPPORTUNITY
Award-Winning
Yacht Sales & Service
A detailed Offering Memorandum and full financials are available to qualified partners.
OVERVIEW
Company Summary
The company is located in the Mid-Atlantic region and is one of the premier yacht sales and service companies, and top brokerage house in the region. The widely acclaimed service department provides all types of commissioning, boat repair and maintenance.
The Company is a one-stop-shop for:
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Sail Boats
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Power Boats
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Pre-owned boats
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Brokerage
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Financing, Insurance, Title
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Full Service Department
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Parts and Accessories
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Cleaning and Detailing
The company has 4 locations and has tripled in size over the past 6 years to $45 million in revenue and 59 team members, all while earning multiple awards and accolades. The company carries several premier brands in the sail and power boat categories. Details on these will be shared with qualified partners via the Offering Memorandum.
Revenue by Product and Service Category
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New Boat Sales: 24,000,000
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Used Boat Sales: 18,900,000
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Service: 2,100,000
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Parts & Accessories: 1,100,000
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Detailing: 665,000
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Finance and Insurance: 126,000
FINANCIAL SUMMARY
2019 Projection
Revenue:
45,100,000
Gross Profit:
6,040,000
N-EBITDA:
1,010,000
Inventory
$9,954,335*
*floor plan credit facilities to be assume alongside inventory
FF&E
$552,835
The dip in gross profit in 2018 was due to a one-time set of events. Included for example, was a one-time inventory overage that has now been right sized, and unprofitable trade inventory has been sold through. Full details on this are included in the offering memorandum.
NEXT STEPS
A detailed Offering Memorandum and full financials are available to qualified partners.
CONTACT:
Aimee Burley
301-458-0884
ACQUISITION TERMS &
PROCESS
Reason for Selling
The majority owner is a non-operating financial investor seeking a return after 5 years of growth, triggering the sale of 100% of the assets of the company. The minority owner may stay indefinitely or be replaced depending on the terms of the transaction.
Acquisition Terms
Yacht dealers of this size and similar characteristics are typically valued at a Revenue multiple of .08 to .24 and a Gross Profit multiple of .6 to 1.1 which establishes a broad range of 2.8 million to 11.2 million, not including inventory. Offers are expected to be in this range, and each will be evaluated on its own merit, including deal structure and both financial and non-financial attributes.
The contemplated transaction is expected to be a traditional sale of assets where all tangible and intangible assets and goodwill are included the purchase price, and no liabilities are assumed, aside from floor plan financing attached to the inventory being acquired.
More detail on this is included in the Offering Memorandum, which will be shared with select qualified partners.
Process
It has become clear that the company is a highly desired acquisition and the potential valuation range is broad. As such, management desires to evaluate as many acquisition scenarios as possible, in a relatively short time and structured process.
The process consists of 5 timed stages:
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Discovery
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Management Calls and Meetings, Phase 1
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Indication of Interest Letters – June 21
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Management Calls and Meetings, Phase 2
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Letter of Intent - TBA
Note that this timeline and process does not prohibit a candidate from submitting an Indication of Interest or Letter of Intent at any time. The associated dates will guide the wrap-up of the major phases of the process, but may be preempted by an offer that management elects to pursue.
More detail on this is included in the Offering Memorandum, which will be shared with select qualified partners.