Some good friends of mine are selling their Harley Davidson dealership located in Phoenix, Oregon - which is near Medford, Oregon in the beautiful Rogue Valley.
Link to their listing on BizBuySell:
I'm not involved with the sale AT ALL, but I know that there is some kind of vetting process with the Harley corporate people where they want a buyer to have had prior experience running a somewhat similar type of business. Ymmv.
I'm the wrong person for that business, but it is a beautiful area.
It's a great place to live and a well established business but I'd lose sleep spending $2 million on a HD dealership and no building included. Things look shaky to me right now.
Maybe if things were going well they might want $5 million for it. $2 million might be a good deal?
Not that I'm giving any serious thought to this but I wonder if the real estate is included in the EBITDA calculation as a lease or mortgage payment and if the real estate is available to lease if it's not purchased with the dealership.
Harley dealer are failing in Southern California now, even big name old school ones. One that far out of a major area is a money pit. I love HD FYI but this is just the nature right now.
A line of overpriced products with a rapidly aging customer base. Not a good investment.
The whole powersports industry is having problems these days - look at KTM and Arctic Cat.
Does that EBITDA seem low? Not sure what the margins are on dealerships but that seems petty tight for a 5M business (and I am only a super novice financial guy) - that may be totally normal.
Make sure you wear your pirate outfit and call everyone brother.
stuart in mn said:The whole powersports industry is having problems these days - look at KTM and Arctic Cat.
And Harley is not immune with their dealers closing at alarming rates, and blaming corporate for it
If I was in the market for a new bike, the Nightster is just about ideal. I'm old with grey hair, so I can buy a Harley, but honestly, I really like it.
Would I choose it over the Z900 though?
No, I just want a bike, not a lifestyle.
Kendall_Jones said:Does that EBITDA seem low? Not sure what the margins are on dealerships but that seems petty tight for a 5M business (and I am only a super novice financial guy) - that may be totally normal.
I had the same thought. Plus the sale price is close to 10x EBITDA which seems high for this type of business. Would be interesting to see how EBITDA compares to the actual GAAP number, too.
BoxheadTim said:Kendall_Jones said:Does that EBITDA seem low? Not sure what the margins are on dealerships but that seems petty tight for a 5M business (and I am only a super novice financial guy) - that may be totally normal.
I had the same thought. Plus the sale price is close to 10x EBITDA which seems high for this type of business. Would be interesting to see how EBITDA compares to the actual GAAP number, too.
I believe that there are at least three family members pulling salaries out upstream of EBITDA, so ... ymmv.
In reply to Sparkydog :
Ah, that makes sense. Not that one would recommend buying any business without having a close look at the books so that should be pretty obvious.
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