Car Hire Business With Highly Profitable Accident Claims For Sale

Business description

Car Hire Business with Highly Profitable Accident Claims Division

This unique business was founded in 2004 as a Accountancy Practice specializing in serving the Eastern European business community in West London. After a number of years building a loyal client base, the founder seized the opportunity in 2008 to diversify into Car Hire for insurance claimants and private individuals along with a Personal Injury Accident claim business. These business have grown rapidly, proving highly profitable, and have superseded the original Accountancy business by some margin, which has now taken a back seat in the overall operations of the company.

The business is licensed by the Ministry of Justice to handled personal injury claims and is a member of the Office of Fair Trading. The Ministry of Justice license is hard won, and itself is a great asset to the overall company. The business has been built on providing services to Eastern European community and now receives numerous daily referrals from across London and the Home Counties. From this base, the business is well placed for further expansion serving other customers across the Capital. The business enjoys zero direct competition around the local West London area, and has a well developed web presence to draw in extra customers. The business is now working at capacity with the vendor and his team working hard to keep-up with the on-going work-load.

The majority of the revenue is now earned by the Car Hire business, representing around £150K per annum, however the Accident Claim business whilst only generating 100K of Revenue, 90% of this can be taken as Profit, with the remaining £30K of revenue generated by the Accountancy service, which is breaking even. It can be seen that under new ownership, and with a focused approach to the next stage in development, the business is very well placed to generate excellent on-going profits with minimal investment in overheads.

Equipment:

The business is operated from a small office with capacity for 4 in the main open plan office, and a further 2 members of staff in the separate accountancy office. There is a main Server with 5 desktop PC’s and integrated Telephone System. The Car Hire division has an ‘05’ Renault Recovery Truck valued at approximately £5,000. There are 14 cars with registrations ranging from ‘04’ – ‘09’ with a combined approximate value of £50,000.

Customer Service:

This business has grown rapidly through recommendation and referral within the local community and across the South East. These referrals are made due to the knowledgeable, friendly and professional service which is offered at all times irrespective of the business division required.

Key Strengths:

The key asset to the business are the multiple revenue streams, which combined with the reputation and high levels of referrals, gives rise to stable on-going revenues from which to build. By investing time, money and effort in achieving the Ministry of Justice license to practice, the business enjoys minimal direct competition, and has an extensive client base across London and the Home Counties.

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

For the current financial year the Turnover of the combined business is circa £280,000, with an overall Net Profit circa £140,000.

Property information

Property:

Leasehold

Lease terms:

The annual rent is approximately £8,000, with business rates payable circa £1,800. There is a new lease for 15 years, signed in 2010, with a 5 year break clause.

Location:

The business is operated from a first floor office on a busy High-Street in a prominent and affluent West London shopping area. The main office occupies circa 300 sq ft, with ample room for 4 to work in comfort, with a separate office of around 150 sq ft which is devoted to the Accountancy practice. The annual rent is approximately £8,000, with business rates payable circa £1,800. There is a new lease for 15 years, signed in 2010, with a 5 year break clause.

Business Operation

Expansion potential:

The business is very well known in the Eastern European community in the U.K, this can easily be built on further, both to related communities and into the wider population with investment in the marketing of the businesses services to customers across regions and backgrounds. With additional staff the business can handle the increasing amount of work being generated, and there is every opportunity to expand the Car Hire business by investing in new vehicles and promotion. The Accountancy Practice can either be expanded in-house, or franchised / freelanced out on a profit share basis, building on the name and reputation already in place.

Competition / Market:

The business has conducted minimal direct advertising, growing over the years primarily from ‘word of mouth’ recommendation and referral. There are 2 corporate websites detailing services offered.

Reasons for selling:

The vendor is looking to move out of the business and spend time in his native Poland whilst investing further in international projects.

Trading hours:

Monday – Friday: 9:00 am – 5:00 pm

Employees:

The business is operated by the vendor and 3 key full-time employees. In addition there are 15 freelance agents handling claims, referrals and elements of the Car Hire business.

Years established:

2004

Other information

Support & training:

The vendor is agreeable to a period of training and handover for the successful transition to new ownership.