Established exchange office with two branches and a history of more than 30 years

Basic information

The subject of the sale is a commercial plant, including two established brick-and-mortar establishments focused on currency exchange activities. Exchange offices have been operating successfully on the market for more than 25 years, generating significant profitability throughout this time – even during the Covid-19 pandemic, during which there was a sharp drop in travel and tourists in the Czech Republic. This is about leaving a business that is completely operational, with employees, and with the possibility of leaving the company logo and brand. The branches of the exchange are well located in the regional cities, they are well known and have a strong position and market share in the region.

The subject of sale is a business plant, i.e. a set of assets, tangible and intangible assets and contractual relationships associated with exchange activity and the operation of two brick-and-mortar branches of the exchange office. The sale does not include the s.r.o. under which the activity is currently conducted, for the reason that under this s.r.o. there are also other activities that will not be part of the sale. As it is not a sale of the company, the buyer of the plant will be sure that the business will not be encumbered by any debts, company obligations from the past or other obligations. The sale includes a database of approximately 30,000 VIP clients.

The sale does not include the CNB license, which will remain with the original s.r.o., but the license will be relatively easy to obtain for the new entity that will acquire the business plant, the current owner is willing to help the acquirer obtain the license. The price of the company also does not include the operating cash with which the branches operate, the need for cash for exchange operations is approximately CZK 10 million for both branches.

The branches operate from leased premises, both lessors are foreign companies, both have a declared interest in extending the long-term lease even after the sale of the branches. Within the company, the owner keeps detailed and separate records for individual branches, it is therefore possible to reliably and demonstrably demonstrate the economics of individual branches to serious interested parties.

The reason for the sale is that the owner of the plant has already reached retirement age and has no successor within the family. The owner currently holds the position of branch manager, his role will need to be gradually replaced after the acquisition of the plant. A suitable buyer would be especially companies which already operate a foreign exchange business and thus will not need to look for new executives to replace the current owner, or possibly financial investors with free capital, as the return is much higher than any similar activity the degree of risk. But there is certainly room for an individual investor looking for an established and long-term profitable business with a good return.

Overview of the company’s financial results