Field Notes: Navigating Towards Success

A Rare Opportunity in Yacht Transportation and Logistics

Sailing, takes me away… Okay, I couldn’t resist. I came across this listing for a yacht transportation and logistics company that has a strong market presence along with substantial physical assets and a well-established operational system. The asking price based on cash flow seems a bit steep, but remember, there’s a whole lot of FF&E baked into it. The company’s been around longer than you or I, and the reason for the sale is our favorite: The owner is retiring. The real estate, sold separately, could enhance the value of this deal for the right buyer.

Financial Overview

• Asking Price: $4,250,000
• Cash Flow: $496,905
• Gross Revenue: $6,507,874
• EBITDA: $496,905
• FF&E (Furniture, Fixtures, & Equipment): $4,195,000 (included in the asking price)
• Real Estate: $2,500,000 (not included in asking price)
• Established: 1954

Business Operations

• Location: Florida, multiple terminals
• Industry: Yacht transportation and logistics
• Employees: 13
• Facilities: Three terminals located on the East and Southeast coasts of the United States

Analysis

Valuation and Price Justification:

• The asking price is approximately 8.6 times the reported cash flow.
• However, the substantial investment in FF&E indicates a significant asset base, which is critical for operations in this industry.
• Strengths:
• Established company with decades of experience, leading to strong brand recognition and a loyal customer base.
• Exclusive service provision with no direct competitors matching its range of services and equipment capacity, providing a competitive edge.
• Strategic geographical locations in prime market areas enhance operational efficiency and customer reach.

Risks and Considerations:

• High dependency on specialized equipment and skilled labor could pose risks in terms of maintenance and staffing.
• The business operates in a niche market, potentially limiting its customer base to those owning or dealing in yachts. However, if you can afford a yacht, you’re probably not too price sensitive.

Opportunities for Growth:

• You could expand the fleet and increasing the number of drivers could meet the existing high demand for yacht logistics and tap into new markets.
• You could increase service offerings like international transportation or additional logistic services tailored to luxury and large-scale marine vessels.
• You could leverage technological advancements in logistics and transportation management to improve efficiency and customer service.

Market and Location:

• Florida is a key hub for boating and marine activities in the US, which supports steady demand for yacht transportation.
• The business’s location and services are well-aligned with the needs of leading US boat OEMs and dealers, securing high-profile clientele.

What do you think? Check it out and let me know!

About: Silverwave Field Notes combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed.