Business for Sale, Would I Buy IT? | Tours and Charters Company

So in today’s version of “Would I Buy This Business for Sale”, we have a tours and charters fun lifestyle. Well, that’s the heading. I’m not sure what the business is exactly yet. The picture is of a group of people galvanting through the woods. So alright let’s keep reading and figure out what this thing is. So the asking price is 1.5 million. Gross revenue is [1,267,640]. And cash flow is [400,360]. So about 31- 32% net profit. Which is a good number. I like anything 25 and up is kind of my threshold for businesses I would look at. The asking price I would say is a little on the high end without knowing anything else just looking at a 400,000 cash flow asking price of 1.5. That’s just a little under 4x, it’s like 3.75. That’s a pretty premium price for a business this size. Let’s see, what does it do? The business specializes in providing leisure tours and chargers in distinctive vehicles catering to a niche market. Okay, what kind of vehicles? Doesn’t say. And it shows people walking in the woods. There’s no vehicle in the picture. Doesn’t say how much furniture fixtures and equipment comes with it. So not sure how many vehicles they’re talking about. The team is home-based. Business is in San Francisco Bay Area/Central Valley. Dedicated full-time manager. Owners involvement is 10 hours a week. Yeah, I don’t know. This is a shady amount of lack of description. Seems to me, that if you have a unique exciting business like this you’d wanna spend more time talking about what it is and what it does, and the opportunities. And you mention vehicles but there’s no vehicles in the picture. Not sure. Not really enough to go on. My first question would be, can this be expanded? If they’re doing something unique like ATV tours through redwoods. That’s not something you can take to other parts of the country cause you need the redwoods. If it’s something you could replicate in other areas, then this is maybe a business that you take and figure out how it works and how to market it and then take it to some other areas and expand that way. But I don’t know. There’s just not enough information here for me to really make a good call. I would say based on the profit margin alone I’d be interested in finding out more. But finding out more would probably be the deciding factor between whether or not there’s anything here. Or this is really just a one-off kind of business that’s not as interesting as they’d like. 

More about this series, CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses up for sale and see if Matt would be interested in buying them.