Business Overview

Automotive part and accessories wholesale w/ eCommerce
SBA Loan Pre-Approved

This business sells automotive parts and accessories to the public through an online marketplace as well as to resellers locally through their warehouse. This business has been successful for decades with little advertising or digital marketing. Focusing on SEO SEM and eCommerce are areas the seller is suggesting to boost sales. Sellers are ready to retire and do not have the desire to grow in these directions.

Current product lines focus on auto-related products, however, the business has unlimited expansion potential into other categories and additional selling platforms.

The asking price of $450,000 + does not include inventory. $600,000 worth of inventory is available at cost to the buyer. The seller is providing a very unique offer for the inventory. Buyers can decide what and how much inventory they would like to purchase. The seller will hold unwanted inventory for a negotiated amount of time allowing the buyer to learn what inventory they want to focus on. At the end of the negotiated term, the seller will liquidate the unwanted inventory.

The sellers are very confident in this business. They are willing to train for a long period of time, as well as negotiate a longer-term consulting contract.

Financial

  • Asking Price: $450,000
  • Cash Flow: $263,000
  • Gross Revenue: $1,384,063
  • EBITDA: N/A
  • FF&E: $33,000
  • Inventory: $600,000
  • Inventory Included: N/A
  • Established: 2008

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Moving to a new warehouse in March 2022.

Is Support & Training Included:

30 days and continued consulting negotiable

Purpose For Selling:

retire

Pros and Cons:

very little

Opportunities and Growth:

Only selling on eBay at the moment. Can expand to Amazon and start SEO, SEM for website.

Additional Info

The venture was established in 2008, making the business 14 years old.
The transaction shall not include inventory valued at $600,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell operating businesses. Nevertheless, the real reason vs the one they say to you may be 2 completely different things. For instance, they might say "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be excuses to try to hide the reality of changing demographics, increased competition, recent reduction in earnings, or a variety of other reasons. This is why it is extremely crucial that you not depend totally on a vendor's word, however instead, utilize the seller's solution in conjunction with your overall due diligence. This will paint a much more practical picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be met or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in new consumers? Often times, companies have repeat consumers, which create the core of their daily revenues. Certain elements such as brand-new competitors growing up around the area, roadway building and construction, and also employee turnover can affect repeat customers and also negatively impact future revenues. One crucial point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the greater the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the regional typical household income effect future revenue prospects?