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Soft Adventure Business With Blue Chip Prospects - N.z For Sale

Otago
Asking Price:
$1,305,700 (NZD) Furniture / Fixtures included
Sales Revenue:
$1M - $5M (NZD)
Cash Flow:
$500K - $2.5M (NZD)

Have you reached the point in your life when you want to slow down & change gears?

Are you ready to make more money with less aggravation?

Or perhaps an addition or complement to an existing business?

This fantastic 'soft-adventure' business is a genuine turnkey operation with great cash-flow and significant upside potential.

Cycle Surgery is a highly profitable business that has been operating on the Central Otago Rail Trail since its inception in 2000. The company mission statement "Is to provide the ultimate cycling experience in New Zealand".

This Business Offers Many Benefits to a Purchaser

- Established
- Dominant player in one of N.Z.'s top growth industries
- Top industry Brand - Trademark protected
- Great cash-flow
- An 'off-season' that still generates a passive income while you are taking time off...
- Innovative, purpose-built systems that facilitate easy management and minimal staff overhead
- IP that has potential for further commercialisation
- Well maintained, up-to-date plant and equipment - with innovations that enhance the customer experience
- Substantial pipeline of business already committed (deposits paid) for the coming season
- New, affluent growth segments
- Untapped customer database ready for further 'mining'
- Freehold land & buildings
- Opportunity to work as hard or as easy as you wish - depends how you want to ride it!


What Does The Business Do?

Cycle Surgery may be best described as “The Rail Trail Travel Agent” because it facilitates the entire Rail Trail Experience from Start to Finish, including bike hire, accommodation, pick-ups and drop-offs and general advice. It is effectively a “one-stop-shop”.

This business does not pretend to be the cheapest. The target markets include people who want an enjoyable, memorable (for all the right reasons) hassle-free Rail Trail experience with perhaps a few trimmings along the way. Those customers require great personalised service; quick and easy transitions to and from various points (e.g. accommodation); comfortable, reliable and modern bikes; relevant advice and accommodation that at least meets their expectations. And the new top quality European E-Bikes are opening up the market to an entirely new, affluent set of customers.

The business offers:

1) Bike Hire - Including new Rail Trail Step Thru Bikes, new Rail-Trail 29ers, standard Step Thru and MTB Hire, kids bikes, tandem bikes, kids trailer, kids seats and tag-a-longs. These include the first custom-made rail trail bike designed specifically for the Otago Central Rail Trail conditions
2) E-Bikes - Brand new, top-quality, 'Moustache' (made in France) E-Bikes that have been selected for their comfort and reliability. Having E-bikes means that many more people are now happy and able to enjoy the Rail-Trail with their friends. This includes older and/or less active people who otherwise would have not been able to participate. This is a rapidly growing segment - opening up the market - creating further business and new business opportunities
3) Luggage Transfers - Clients luggage transferred from accommodation to accommodation
4) Shuttle Transfers - Middlemarch to Clyde and return and Middlemarch to Pukerangi Railway Station and return
5) Tour Itineraries - We do all the planning so all you do is turn up and enjoy the ride!

What is for Sale?

1) Freehold land & buildings, including depot/retail area, manager's/owner's accommodation and large bike storage shed
2) Extensive plant and equipment – including the only fully custom designed Rail Trail Hire Bikes designed for comfort and reliability on the Rail Trail (Note: the owners design, develop and supply the perfect bike to handle the unique conditions that the Otago Central Rail Trail has to offer. This opportunity will continue for the new owner of the business) together with the latest European E-Bikes and two modern vehicles. The Purchaser has the option to purchase some or all of the plant & equipment
3) Intellectual Property (IP) including the Cycle Surgery brand and custom-designed on-line booking system (OBS) for bike hire, bag transfers and shuttles including operational daily driver run sheets and mechanics bike hire reports
4) Two established websites (www.cyclesurgery.co.nz and www.railtrail.co.nz)
5) Stock (at valuation)


Other Features

- Great Location – Less than 1hr drive to Mosgiel (2 modern supermarkets, college, shops etc) and little over 1hr to Dunedin (great shops, colleges, movies, theatre, airport, University etc. etc.). Approx 3hrs to Queenstown and Wanaka.
- Family-Friendly – if you have a family Middlemarch has a great primary school and what could be better than bringing up the kids in a genuine rural area with all the unique experiences that brings
- Seasonal - The business operates from September through to Easter, meaning that you can take a break in the 'off-season'. Perhaps go skiing or relax on the beach in the Islands! But the cash-flow - in the form of deposits for forward bookings - keeps coming in. This provides a substantial passive income over the Winter months
- Proprietary systems – streamline the business operation to be highly efficient & effective. Includes the design / supply of cycles, reservation / logistics software IP. The business is currently run by just the owners and one other employee. The Online Booking System (OBS) can be easily run and managed remotely, even while you are on holiday. And the IP has potential for further commercialisation
- Straightforward Compliance/Health & Safety - Great systems make compliance a breeze.


Broker's Comment:

The entire Business "Lock, Stock and Barrel" is $1,736,725 (plus Stock at Valuation) (all plus GST if any) OR there is the option to split the business into (1) Freehold Going Concern at $1.33m, including land and buildings, plus stock (plus GST if any) plus (2) further plant and equipment (including new E-Bikes) at $416,025 (plus GST if any).

My personal opinion is that, knowing the quality and cost of the additional plant (bikes), and the value they add to the business, a buyer would be strongly advised to purchase the lot. You could possibly exclude one or both of the vehicles if you have other options.

More information available upon request, please contact seller below for further details.

Property information

Real Estate:

Real Property Included

Living Accommodation:

Tidy on-site accommodation - 4-bdrm plus a sleepout. This could be used by owners/managers and/or employees etc

Location:

Middlemarch is a small rural township that is less than 1hr drive to Mosgiel (2 modern supermarkets, college, shops etc) and little over 1hr to Dunedin (great shops, colleges, movies, theatre, airport, University etc. etc.). Approx 3hrs to Queenstown and Wanaka. If you have a family Middlemarch has a great primary school - and what could be better than bringing up the kids in a genuine rural area with all the unique experiences that brings.

Premises Details:

Freehold land & buildings, including depot/retail area, manager's/owner's accommodation and large bike storage shed

Business Operation

Expansion Potential:

Great opportunity to leverage against the IP to grow the business - perhaps replicate in other regions/countries and also expand locally to take advantage of new tracks (e.g. Roxburgh)

Reasons for selling:

Current owners started this business and now feel that the time is right for them to pursue other opportunities and hand this business to someone who can take it to the next level.

Trading hours:

This is a seasonal business that operates from September to Easter, but benefits from ongoing cash-flow approx $2,000 - $8,000pwk in the form of forward deposits in the 'off-season'.

Employees:
One
Years established:
Over 10yrs

Other Information

Support & training:

Current owners will be available to provide support and training - details to be discussed

Website:
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Contact Broker

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