Property Ref: 32883

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Outstanding Tourism Business - Cycle Surgery 'Rail Trail' Central Otago, N.Z.

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Property Information

LOOK! Significant forward bookings with deposits already paid cover a big part of the business investment!

 

Have you reached the point in your life when you want to slow down & change gears?

Are you ready to make more money with less aggravation?

Or perhaps an addition or complement to an existing business?

This fantastic 'soft-adventure' business is a genuine turnkey operation with great cash-flow and significant upside potential.

Cycle Surgery is a highly profitable business that has been operating on the Central Otago Rail Trail since its inception in 2000. The company mission statement "Is to provide the ultimate cycling experience in New Zealand".

 

This Business Offers Many Benefits to a Purchaser

  • Established
  • Dominant player in one of N.Z.'s top growth industries
  • Top industry Brand - Trademark protected
  • Great cash-flow
  • An 'off-season' that still generates a passive income while you are taking time off...
  • Innovative, purpose-built systems that facilitate easy management and minimal staff overhead
  • IP that has potential for further commercialisation
  • Well maintained, up-to-date plant and equipment - with innovations that enhance the customer     experience
  • Substantial pipeline of business already committed (deposits paid) for the coming season
  • New, affluent growth segments
  • Untapped customer database ready for further 'mining'
  • Freehold land & buildings
  • Opportunity to work as hard or as easy as you wish - depends how you want to ride it!

What Does The Business Do?

Cycle Surgery may be best described as “The Rail Trail Travel Agent” because it facilitates the entire Rail Trail Experience from Start to Finish, including bike hire, accommodation, pick-ups and drop-offs and general advice. It is effectively a “one-stop-shop”.

This business does not pretend to be the cheapest. The target markets include people who want an enjoyable, memorable (for all the right reasons) hassle-free Rail Trail experience with perhaps a few trimmings along the way. Those customers require great personalised service; quick and easy transitions to and from various points (e.g. accommodation); comfortable, reliable and modern bikes; relevant advice and accommodation that at least meets their expectations. And the new top quality European E-Bikes are opening up the market to an entirely new, affluent set of customers.

The business offers:

  • Bike Hire - Including new Rail Trail Step Thru Bikes, new Rail-Trail 29ers, standard Step Thru and MTB Hire, kids bikes, tandem bikes, kids trailer, kids seats and tag-a-longs. These include the first custom-made rail trail bike designed specifically for the Otago Central Rail Trail conditions
  • E-Bikes - Brand new, top-quality, 'Moustache' (made in France) E-Bikes that have been selected for their comfort and reliability. Having E-bikes means that many more people are now happy and able to enjoy the Rail-Trail with their friends. This includes older and/or less active people who otherwise would have not been able to participate. This is a rapidly growing segment - opening up the market - creating further business and new business opportunities
  • Luggage Transfers - Clients luggage transferred from accommodation to accommodation
  • Shuttle Transfers - Middlemarch to Clyde and return and Middlemarch to Pukerangi Railway Station and return
  • Tour Itineraries - We do all the planning so all you do is turn up and enjoy the ride!

What is for Sale?

  • Freehold land & buildings, including depot/retail area, manager's/owner's accommodation and large bike storage shed
  • Extensive plant and equipment – including the only fully custom designed Rail Trail Hire Bikes designed for comfort and reliability on the Rail Trail (Note: the owners design, develop and supply the perfect bike to handle the unique conditions that the Otago Central Rail Trail has to offer. This opportunity will continue for the new owner of the business) together with the latest European E-Bikes and two modern vehicles. The Purchaser has the option to purchase some or all of the plant & equipment
  • Stock (at valuation on take-over) - including parts, clothing etc
  • Intellectual Property (IP) including the Cycle Surgery brand and custom-designed on-line booking system (OBS) for bike hire, bag transfers and shuttles including operational daily driver run sheets and mechanics bike hire reports
  • Two established websites (www.cyclesurgery.co.nz and www.railtrail.co.nz)

Other Features

  • Great Location – Less than 1hr drive to Mosgiel (2 modern supermarkets, college, shops etc) and little over 1hr to Dunedin (great shops, colleges, movies, theatre, airport, University etc. etc.). Approx 3hrs to Queenstown and Wanaka.
  • Family-Friendly – if you have a family Middlemarch has a great primary school and what could be better than bringing up the kids in a genuine rural area with all the unique experiences that brings
  • Seasonal - The business operates from September through to Easter, meaning that you can take a break in the 'off-season'. Perhaps go skiing or relax on the beach in the Islands! But the cash-flow - in the form of deposits for forward bookings - keeps coming in. This provides a substantial passive income over the Winter months
  • Proprietary systems – streamline the business operation to be highly efficient & effective. Includes the design / supply of cycles, reservation / logistics software IP. The business is currently run by just the owners and one other employee. The Online Booking System (OBS) can be easily run and managed remotely, even while you are on holiday. And the IP has potential for further commercialisation
  • Straightforward Compliance/Health & Safety - Great systems make compliance a breeze

 

Broker's Comment:

Price: Business $729,850 plus SAV (all plus GST) - includes goodwill and plant. Buyer also has the option to purchase freehold land & buildings (instead of leasing) of $630,000 plus optional $348,500 of additional plant (all plus GST if any).

 

Broker's Comment:

Where else can you buy a great 'lifestyle business' where a large chunk of the purchase price is already covered by deposits for forward bookings? This highly profitable business has been set up in such a way to streamline the business operation including the design / supply of cycles, reservation / logistics software IP (both available ongoing under licence arrangements for new owners).

For further information or to discuss this opportunity, please contact our specialist Business Broker, Peter Gale, AREINZ on 021 608 107 or +6421608107 email: peter@tourismproperties.com

 

 

Awards include:

  • Qualmark - both Luxury Rail Trail Tours and Cycle Surgery Rail Trail are Qualmark Endorsed Visitor Activities.
  • Cycle Surgery Rail Trail Limited 2014 Westpac Business Awards Tourism Awards – Finialist
  • Trip Advisor - 2015 - Certificate of Excellence Winner

About the Otago Central Rail Trail​:

It is New Zealand's Original Great Ride and extends 150 kilometres along the former railway route between Middlemarch and Clyde. Its wide gravel (stony) path has a gentle 1 to 50 gradient, making it ideal for walkers, cyclists and horse riders. This is a journey into the region’s heartland of ever-changing mountainous, dry, rocky landscapes, productive farmland, spectacular river gorges, tunnels, viaducts, thriving townships, old stone and mud-brick dwellings and preserved gold mining settlements – shaped and seasoned by the harsh, continental climatic extremes unique to Central Otago.

The Rail Trail connects four Central Otago plains and valleys: the Strath Taieri with the township of Middlemarch, the Maniototo with Ranfurly at the centre, Ida Valley with Oturehua and the Manuherikia area with Alexandra and Clyde. Other townships are dotted along the trail and accommodation is available in all of these.

Middlemarch is an hour's scenic drive from Dunedin or by train aboard the world class Taieri Gorge Railway. The change from the city is remarkable - rural New Zealand at its best. Many visitors come to Middlemarch to cycle the iconic Otago Central Rail Trail and is ready to help you have a memorable cycling holiday adventure. The Tourist Hub has information about locally-based Rail Trail operators, cycle hire outlets and transport options. There is also a great range of acommodation options throughout the district.

Other activities include cycling the many fascinating back roads, walking to New Zealand’s only inland salt lake, visiting the vast Te Papanui Scenic Reserve, fishing for trout in the Taieri River, play golf and tennis, browse the Museum and craft galleries, tramp on the Rock and Pillar Range or take a tour of the Strath Taieri Valley.

“After a long day on my bicycle, I feel refreshed, cleansed, purified. I feel that I have established contact with my environment and that I am at peace. On days like that I am permeated with a profound gratitude for my bicycle … What a wonderful tonic to be exposed to bright sunshine, drenching rain, choking dust, dripping fog, rigid air, punishing winds! I will never forget the day I climbed the Puy Mary. There were two of us on a fine day in May. We started in the sunshine and stripped to the waist. Halfway, clouds enveloped us and the temperature tumbled. Gradually it got colder and wetter, but we did not notice it. In fact, it heightened our pleasure. We did not bother to put on our jackets or our capes, and we arrived at the little hotel at the top with rivulets of rain and sweat running down our sides. I tingled from top to bottom.”

Paul de Vivie, “Vélocio”, Le Cycliste, France, 1911

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  • Valuation (2013) Part 2 - 957.5 KB

  • Valuation (2013) Part 1 - 2.1 MB

  • Financials for 3yrs to 2017 - 127.6 KB

  • Property Valuation 1 & 3 Aberafon St - 10.2 MB

  • Business Price Breakdown 2018 - 357.2 KB

  • Cycle-Surgery-forward-bookings-as-at-end-Feb-2018.xlsx - 27.6 KB

TripAdvisor Reviews - what the guests are saying

“The Best Bikes”
5 of 5 stars Reviewed 
8 of our group hired these bikes. They were very good for the terrain and weather we had to pass through. Suspension in the seats as well as gel padded as we were on them up to 5 and 1/2 hours at a time. They wrested through for ease of mounting and dismounting when we were weary. They had a tiny light which was enough to get through the tunnels. The panniers were great for weather proof and quantity of gear. Visited October 2015

“Excellent service, excellent bicycles”
5 of 5 stars Reviewed 
Dave and Pip have excellent, well serviced bicycles - smooth riding and solid. I felt safe on my bike even on the those downhill sections with a lose gravelly surface. Pip was not at all troubled to helped me out when there was some confusion about my accommodation in Middlemarch. Most riders ride the trail from Clyde to Middlemarch, but from my point of view the ride from Middlemarch to Clyde is the better trip. There is a more gradual rise to the high point and the wide sweeping downhill curves from Tiger Hill Ganger's Shed to Chatto Creek is spectacular. Visited October 2015

“Brilliant Experience with Cycle Surgery”
5 of 5 stars Reviewed 
Big thank yous to David and Pip for the brilliant itinerary when I cycled the trail from Clyde to Middlemarch. I was able to personalise my itinerary and do everything I wanted to on this trip. I have not ridden a bike for over five years (and then only up the road) and I have to say that the bikes are superb. I was a bit worried I would be crippled by day three with a sore bum but the seats are fantastic. The only thing I would change is I would of liked to have explored the salt lake or the amazing rock formations and landscapes in the Middlemarch area. Maybe this is something that could be offered while waiting for the Taieri Gorge train. I plan to do this rail trail again and I would definitely choose Cycle Surgery. Visited October 2015

“Service with a smile”
5 of 5 stars Reviewed
My husband and I just completed a two day cycle and the service provided by David and Pip was excellent. From the friendly smile from Dave when we met him in Clyde to the conversation we had on our drive to Wedderburn, they live and breath cycling. It is what they do. They want you to have had an excellent experience, and we will definitely be back to ride the remainder of the trail with them. The bikes were very comfortable to ride. Visited October 2015

“Cycle Surgery - couldn't thank you more!”
5 of 5 stars Reviewed   
My husband and i have just completed the otago rail trail and would like to sing the praises of Cycle Surgery. Although we were not actually travelling with their company, they helped us out so much! we really couldn't thank them enough for their kindness, generosity and welcome atmosphere! i would recommend their service to anyone and everyone i meet, and when we cycle again, it will definately be with these guys! Visited October 2015

“So friendly and helpful”
5 of 5 stars Reviewed  
Dave and the team were just so friendly and helpful. They accommodated my request for SPD pedals, transported our luggage each day (without complaining about the weight!). And when we returned our bikes it was all so seamless and the coffee is GREAT.