Listing ID: 66613
Business Overview
Established significantly before the turn of the last century, this business is an award-winning Eastside auto repair facility dedicated to customer service
and trustworthy repairs. The client list of the business has been developed over multiple decades from a loyal customer base seeking reputable automotive care for both import and domestic vehicles.
The business operates from a strategic location in close proximity to residential communities, major employment centers, and the highway infrastructure.
The Eastside median household income is $120,456 almost double the national average. The area averages 2.46 people per home with primarily two-income households and high-end value vehicles requiring higher than average service routines. On any given day the business diagnoses check-engine lights and their techs fix problems, performs routine tune ups and change fluids for a variety of customer vehicles. They specialize in vehicle maintenance of all makes and models. The shop has the capability to diagnose engine malfunctions and complete specialty work on engines and transmissions.
The 10+ bay facility utilizes approximately 5100 square feet of commercial space, with fenced parking for up to 35 vehicles. A 5-year lease (+ 5-year Option) for $7000/ Month + triple net is available to the next generation owner.
The owner fulfills Operations Management with a Service Underwriter in a customer facing role, taking care of the shop workload with a talented team of (3) talented Master Technicians.
The lead broker at IBA for this company is Jeffrey Bryan. Mr. Bryan can be contacted directly at (425) 454-3052 or jeff@ibainc.com.
Financial
- Asking Price: $975,000
- Cash Flow: $425,000
- Gross Revenue: $1,575,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The seller will provide an appropriate amount of transition training/consulting to smoothly facilitate a transfer of ownership.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nevertheless, the genuine reason vs the one they say to you may be 2 totally different things. As an example, they might say "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, recent decrease in earnings, or a variety of various other factors. This is why it is extremely crucial that you not count absolutely on a vendor's word, but rather, make use of the vendor's response along with your general due diligence. This will repaint an extra practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money in order to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that earnings margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that must be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in brand-new customers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day revenues. Specific aspects such as new competition growing up around the location, roadway building and construction, and personnel turnover can affect repeat clients and negatively influence future incomes. One important point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the higher the chance to construct a returning client base. A last idea is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the neighborhood median home earnings impact future earnings prospects?
