Profitable Power Sports Retailer-No Banking Needed

After a decade of operations this family run business is looking to transition to new ownership. From start-up to a complete sales, service and parts dealership this business has had a good run. Retailing power sports equipment to include a complete spectrum of ATV’s (both domestic and imported), golf carts, mopeds, scooters, dirt bikes, accessories, haulers and more. The family office behind the operation eagerly looks towards retirement for some and new adventures for others.

This operation has found success in the market by owning the inventory outright while maintaining brands such as Yamaha, Massimo and Apollo. This structure pairs with positive vendor relationships allowing the business to avoid some of the hurdles and red tape often associated with selling some other mainstream domestic brands and/or importing from foreign manufacturers with whom retailers cannot control deliveries and/or inventory levels.

While the brands on the sales floor may be specific the service department on the other hand does its best to be as agnostic as possible. The six skilled, full-time, non-union technicians are kept busy servicing all the brands the business sells along with those they don’t.

There is no chance this power sports dealer can go unnoticed; from its generous presence paralleling a major Michigan State Highway to its spacious, paved parking lot displaying eye-catching inventory to a late model purpose-built two-story sales building. Just as the products they sell are built for outdoors and adventure, so goes the property this business owns and occupies.

This dealership boasts an 8.4 acre footprint of attractive, undeveloped land awaiting growth opportunities, a large 10,000 square foot indoor showroom with a lower level functioning as an additional showroom, and a second floor business office which arranges financing and insurance for its customers. There are also two additional utility out-buildings (3,000 square feet and 5,600 square feet respectively) housing overflow inventory and the company’s skilled service department. Put it all-together and this profitable, cash-flowing business located on the outskirts of a major and desirable West Michigan city has plenty of room to sell, service, store, and grow.

Now let's talk about the deal itself. Historical annual revenues have hovered between $2-3 million with average annual SDE (SDE = seller’s discretionary income – the historical, normalized cash flow available to pay the owners and service debt) of $300,000.

The seller's goal is to make this an attainable opportunity for a well qualified buyer and a mutually beneficial transaction. This enterprise portion of this niche business is being offered at $650,000 (inclusive of inventory). With a modest downpayment and attractive repayment terms a buyer will be able to step into this turnkey operation assuming the inventory, assets and goodwill of the operation. The expansive real estate and its multiple buildings can be leased at a fair market rate of $8,500 a month; or for the more well capitalized buyers a purchase option is available with a $1.4 million value based on a 2025 appraisal.

The sellers look forward to giving the successful buyer of this business ample transition training to make sure the new owner is knowledgeable in “all things motorsports.”

To learn more about this niche business with both significant barriers to entry and an incredible financial package contact Ryan Johnson at 269-338-9809 or [email protected]