Taxi Cab Company In Major Midwest City For Sale

Business description

This is an established Taxi company who has been around for about 20 years. The company owns a fleet of about 78 vehicles. The company is basically engaged in the leasing of taxicabs to taxi drivers, management of contract accounts (something that is not very well done due to absentee owner) and maintenance of taxicabs. The 2007 sales was $2.5 million with an estimated EBITDA of $509,917 and discretionary cash flow to the owner of $632,018. The company is housed in its own special use property designed for taxi usage. The company is absentee owned and has a General Manager and staff of about 8 (including dispatchers, adjusters, mechanics, etc.) The company's facilities have a few bays for the service and repair of its fleet. Virtually all maintenance and repairs of its vehicles are done in-house. The company is one of the leading suppliers of taxicab services in its metro area. Like most current taxicab services, they use drives as independent contractors who among other things are responsible for purchasing the gasoline for their vehicles (it is worth noting that the city of Cleveland has made allowances so that the taxi cabs can recover the recent gasoline price increases.) Contract fares account for a significant part of its business and are renewed approximately every one to 3 years. The potential exists for more contract fares. However, due to the fact this is an absentee owned business, this growth potential has not been properly exploited by the company. The company has the ability to get up to about 100 additional taxicab licenses. This represents a nice potential for growth given the fact that in this market there is a significant barrier to entry for new companies. That is, new entrants in the business have to have a minimum of 25-car fleets. ASKING PRICES: Business: $ 1,375,000 including the Real Estate (NOTE: The brokering of the Real Estate will take place through RE/MAX Traditions.)
NOTE 1: Prospective purchasers of this business wishing to receive on the business must sign a confidentiality agreement (a copy of which must be submitted to the seller in advance) to be approved by Seller in Advance. All prospective purchasers must demonstrate financial ability, in Seller?s discretion, to purchase the business in advance of receiving any confidential materials. NOTE2: Listing Broker is willing to co-broker with other Business Brokers who will be required to source Buyers' Fees. NOTE 3: Listing Broker is currently reviewing the information of this ad with the Seller. Listing broker reserves the right to change presented information without advanced notice.

Franchise terms

Not Applicable.

Property information

Real Estate:

Real Property Included

Lease terms:

Real Estate price included in the asking price.
NOTE: The real estate side of the deal will be brokered by RE/MAX Traditions.

Living accommodation:

Not Applicable

Location:

The company is housed in its own special use property.The asking price is for the real estate is $300,000.

Other information

Expansion potential:

Contract fares with corporations and professional firms is an option that has not properly pursued by this company due to ansentee management. The signifincant 5-year contract that has been gained by the company recently is opening new avenues for the growth of the company.

Competition / Market:

The company is one of the leading companies in its market which may be ripe for consolidation. For more information, please contact the Business Broker who wil supply you with more information.

Support & training:

Seller will arrange training with the Seller's team.

Reasons for selling:

Owners decided to focus their business activities in other businesses and regions.

Financing available:

None