Listing ID: 66639
Business Overview
This business is a full-service automotive repair facility in Okanogan County. Serving the growing communities of Winthrop, Twisp, and the greater Methow Valley, this highly reputable family-owned business specializes in lube and oil services, tune-ups, routine safety inspections, regularly scheduled and preventative maintenance, brakes, batteries, and select engine and transmission work. Recognized for service, quality, and integrity, the shop enjoys a tremendous amount of repeat business from an established, multi-generation client base of local residents with significant
additional revenue generated from a large contingent of seasonal residents and visitors to the area. Stability of the business cycle and consistency of earnings are the norm. Routine maintenance and scheduled services are booked 2-3 weeks out with
walk ins accepted on availability basis. The facility services an average of 15-20 vehicles daily.
The business occupies a prominent Seller owned building on a highly visible corner lot at the busy intersection of the main municipal arterial and the scenic North Cascades Highway. Constructed in 2004, the efficiently designed purpose-built four
bay facility is equipped with vehicle lifts and hoists, and features convenient street access, a dedicated parking lot, and a cozy customer waiting room on the main floor. The basement houses services pits for the two dedicated oil change bays and
provides additional storage space. Ordinary course of business is supported by a knowledgeable group of 5-6 team members including Master/ASE Certified
mechanics, a lube technician, and front office and administrative support staff. Ownership is contributing approximately one full time equivalent to the labor of the business.
Hours of operation are Monday-Friday 8 A.M.-5 P.M. The business is
electively closed on weekends. Due to the rapidly growing target market and customer demographics, historically high demand for the company’s services, and limited competition, an immediate avenue for increased revenue and organic growth
exists by adding staff and expanding hours of operation. This is a rare opportunity to own a standout lifestyle business with generational goodwill in a vibrant community and to secure a long-term investment in the form of rapidly appreciating
commercial real estate assets. The Methow Valley area is an emerging real estate marketplace experiencing explosive population growth and is a world renown destination for outdoor recreation activities including fishing, river rafting, hiking,
mountain biking, and cross-country skiing.
The business has been valued at $345,00 and the real estate $650,000 for purposes of their composite sale.
The lead business broker for this listing at IBA is Oliver Kotelnikov. Mr. Kotelnikov can be contacted directly at (509) 907-9406.
Financial
- Asking Price: $995,000
- Cash Flow: $190,000
- Gross Revenue: $865,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $10,000
- Inventory Included: Yes
- Established: N/A
The seller will provide an appropriate amount of transition training/consulting to facilitate a smooth transfer of ownership.
Additional Info
The sale shall include inventory valued at $10,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. Nonetheless, the true factor vs the one they say to you may be 2 entirely different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or a range of other reasons. This is why it is very essential that you not depend totally on a vendor's word, but instead, use the vendor's answer in conjunction with your total due diligence. This will paint an extra reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover items such as supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new clients? Most times, operating businesses have repeat consumers, which form the core of their everyday profits. Specific elements such as brand-new competitors sprouting up around the location, road building, and employee turnover can impact repeat customers and also adversely affect future revenues. One crucial point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the chance to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the local average house earnings effect future earnings potential?
