BikeCo Repairs | Motorcycles, Sleds, and ATV’s
Live the Dream!
What they Do – The short version
- BikeCo repairs and maintains motorcycles, snowmobiles and ATV’s
- Buyer should have the needed
mechanical knowledge and skills
- Their shop is in a Calgary satellite community
- They are busy year round.
- New customers come from word-of-mouth, location and some marketing.
- They keep common parts on hand.
- Other items on-hand in Calgary supplier warehouses.
- Owner manages the operation and administration
- Owner will ensure a smooth transition
- Good lease
- Building may also be available for sale.
They repair and they also sell parts to folks who fix their own. They also sell some used equipment.
There are three years of financial statements and a complete equipment list for viewing by qualified buyers.
BikeCo serves local customers from a Calgary commuter centre. The business is within an hour of the Calgary Tower. (We need a non-disclosure on file to pin point the location any finer that.)
Their shop is housed in a 2000 square foot building surrounded by a large, well lighted and fenced storage yard protected by motion detectors.
There is very easy access for both customers and shippers. There is a good lease that will renew when the new owner takes possession of the business.
A satisfactory lease renewal can be a condition of the sale.
Their location absolutely gives them a competitive advantage.
The firm has years with the same suppliers and has been rewarded with a good discount structure.
Parts arrive mostly by courier so jobs seldom sit waiting on parts. Almost all parts arrive within two days.
Inventory is kept low due to the variety in the work performed and the cheap freight rates negotiated with the couriers and the speed of delivery. Inventory runs between $5000 to $7000.
They try to maintain a two month supply of common service parts to survive seasonal shortages.
Besides the owner, the firm has one service tech and an apprentice service writer. One licensed technician has to be on staff to legally operate the business.
There have been no WCB claims.
They are a licensed out-of-province Inspection facility with the special tools required by the Alberta Government.
BikeCo has no warranty program in place beyond ‘take care of the customer first’. Their reputation is excellent.
Business could be improved without hiring more staff simply be increasing their retail offerings. Their yard is large enough to build storage facilities for their customers’ equipment. That could provide a second source of revenue.
The business is somewhat seasonal but is somewhat offset by their snowmobile and ATV business. Their shop is working year round. Historically, January through March is slow. Business starts to perk in April and is pretty solid until Christmas.
A complete equipment list is available to qualified buyers. A short list would include lifts, welders, drill presses, grinders, hand tools etc. They maintain all their own equipment.
The owner’s wife keeps the books on their computer.
Customers purchase our services in the shop or through pick up and deliveries.
New customers arrive through referrals and their excellent location. They have been running pretty much at full capacity and do not have a regular advertising schedule. There is no web site.
There are lots of repeat customers but the single biggest reason for new customers is their location.
Q. Why you are selling?
A. I’d like to work less and I am able to semi retire at this point.
Q In your words, what does the firm do?
A We sell service work at a personal level. We built up trust by being very accountable to our customers
Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?
A . I am a licensed motorcycle technician, by trade. I write invoices, order parts, answer the phone, process customers, oversee operations and help with troubleshooting and repairs in the shop, when there is time.
Q. How long will you stay after the sale to help in the transition?
A. As long as 8-12 months depending on the buyer and his needs.
Q. Have the accounts receivable been purged of bad debts?
A. I have no debts, just a visa that is paid of every month. The new buyer should have reward credit card.
Q. Will you agree to a non-competition clause?
A . Yes
Q. Who should buy this business?
A . A person with a passion for the business, a hands-on attitude, good people skills are a must, but it isn’t necessary to be a licensed tech.
Q. Where do you think the business has a competitive advantage?
A. By being accountable, personable and making sure our customers understand the amount charged and what work was performed on their equipment.
Q. Is there anything else you think a potential buyer might want to know?
A. The area in which the shop is located has a big acreage community, meaning lots of money and lots of motor sport vehicles.
Interested? Next steps:
1. Fax / scan the non-disclosure document
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal
The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.