Description
SOLD! ‘Q4 2018
Yacht Brokerage for Sale! – Yacht Brokerage – Rare – Ride a Wave to Success!
Redondo Beach, CA (Los Angeles County)
Zip Code: 90278
Asking Price: $174,900
Cash Flow: $193,000
Gross Revenue: $2,700,000
EBITDA: N/A
FF&E: N/A
Inventory: N/A
Established: 1997
Business Description – Yacht Brokerage for Sale
25 years at the same harbor location pays off; respected Yacht Brokerage brought in $2.7 Million in sales last year!
As of posting, sales are on track to equal or best 2017!
- Ten boats have sold to date in 2018 and 10 more are under contract.
- Business focus is on (but not limited to) boats over 26-feet and approximately $100,000 in value.
- State-issued licenses required.
- This IS the good life – waterfront location is serene but exciting, beautiful and profitable.
- NDA is required for comprehensive CIM crafted by ProNova Partners. ProNova representatives respond timely to all inquiries.
- We look forward to supporting your business endeavors and being a part of your success.
Detailed Information – Yacht Brokerage for Sale
- Employees: 3
- Facilities: Small Waterfront office rents for $800 a month plus % of gross sales.
- Competition: Minimal in this harbor. SoCal is fierce but cooperative.
- Growth & Expansion: Take on new salespeople, expand advertising efforts.
- Financing: $105k Down, Balance financed over 24 months.
- Support & Training: Yes, Seller wants to maintain license and work part-time.
- Reason for Selling: Retirement/Travel
Industry Indicators
The average US retail price for diesel and regular gas, which may influence recreational boat use, rose 19.5% and 12.8%, respectively, in the week ending April 16, 2018, compared to the same week in 2017, and have continued to rise through the month of May.
However, fuel prices are not that great a factor for owners of larger boats:
- US personal income, which drives consumer ability to purchase boats, rose 3.7% in February 2018 compared to the same month in 2017.
- US retail sales for motor vehicle and parts dealers, a potential measure of demand for boats, increased 3.5% in the first three months of 2018 compared to the same period in 2017.
- US boat sales increased 2% in 2013, 6% in 2014, 8.5% in 2015, and about 7% in 2016.
Industry Overview
- Competition from Used Boats – Because fiberglass and aluminum boats last a long time, owners may own boats for 10 years or more. In 1997 the average age of a boat was 15 years old.
- Today the average age is 20 years. An estimated 958,000 pre-owned boats, including powerboats, personal watercraft, and sailboats, sold in 2015, according to the National Marine Manufacturers Association.
- Traditional powerboats accounted for 84% of total used boat unit sales in 2015. Most of these are smaller than primarily listed or bought through this brokerage.
- Boat Sharing through Apps and Clubs – More customers are taking advantage of the new opportunities provided by the growing “sharing economy,” which has expanded in the boating industry through mobile apps and boat clubs. Peer-to-peer boat rental service Boatsetter offers boats at more than 300 US locations with plans for international expansion.
- Boat clubs offer customers an opportunity to access boats, without the hassle and expense of cleaning, maintenance, insurance, and slip fees. Traditional boat dealers may be able to capture consumers who start off in shared or rented boats and later decide to purchase their own boat.
- Online Information, Social Media – Boat shows have long been the main source of information for consumers and members of the boating industry, but the internet is a growing resource for boat information. Almost 65% of new boat customers researched boat information online prior to making a purchase, according to a study by Discover Boating.
- Social media websites played a role in that pre-purchase research for about 22% of new boat buyers.
