Strategic acquisition for CT or NY chauffeured transportation company
Asking Price:
$240,000.00
Gross Revenue:
$320,000.00
Cash Flow:
Cash Flow Type:
Business Description:
This company has been serving the chauffeured transportation industry and Connecticut since 1992. The sale price includes equipment and permits which the seller values at $140,000. Over the last 18 years, the company has directed its focus on developing a loyal customer base, impeccable customer service, and targeting only the most profitable business in the area. As a result, the company has created a solid business with a reliable revenue stream and an impressive list of clients. Aproximately 180K of annual revenue is comprised of weddngs and prom business. The remaining 140K is airport transfer and corporate business. The company's top 20 customers have consistent customers anywhere from 5 to 15 years. The company has always embraced technology and recently invested heavily into a new website with first class web optimization features. If you are already in the chauffeured transportation industry, this acquisition has the potential to create up to 500,000 in new cash flow over the next five years while increasing the enterprise value of your existing company by up to $300,000 following closing. If buyer operates efficiently, the business could potentially pay for itself in less in 10-11 months. Please contact Spencer Tenney at stenney@charlestenney.com for more information.
Seller Financing:
Available for Qualified Buyers
Year Established:
1992
Mgmt. Training/support:
2 weeks training from owner included in sales price. More can be negotiated.
Reason For Selling:
Seller would like a career change
Facilities:
Can be relocated. Currently maintains month to month lease in virtual office complex. The first class office space and conference rooms have been an asset to the owner when making presentation to prospective clients. Approximately $235 per month.
Market:
The local market is rich with business travelers going to and from the New York City area and the surrounding airports. It also contains a large population of affluent individuals who enjoy first class transportation for nights on the town and other important events. The chauffeured transportation industry totals about 6 billion dollars annually in gross revenues, according to LCT Magazine. The industry is fragmented with no single company commanding more than 3% of the industries revenues.
Outlook/Competition:
The company has a strong reputation in the area and a reliable customer base. While many chauffeured transportation companies struggled in 2009, this company’s sales stayed on track. The company’s prices are some of the highest in the area. The company has focused on only the most profitable trips which are primarily long trips into New York City. As a result, the company regularly turns down many short trips in the area. Many opportunities to serve new customers in the local market are available immediately. Also, the current company ownership has not desired to address the national and international transportation needs of its existing customers. If a potential buyer was already equipped and motivated to address these needs, there could be great opportunities to expand the existing company’s existing customer relationships.
