Listing ID: 66920
This automotive detailing business has been serving the Portland area since 2013, providing top quality service to dealerships and private customers alike.
- Asking Price: $100,000
- Cash Flow: $40,819
- Gross Revenue: $117,116
- EBITDA: N/A
- FF&E: $7,630
- Inventory: N/A
- Inventory Included: N/A
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The company leases a 3,000 square foot shop in a commercial/industrial park.
Will train for 4 weeks @ $0 cost. The company provides interior/exterior detailing, ceramic coating, headlight restoration, and engine detailing.
Moving to another state.
Competition in the industry is high, with many small companies competing for a share of their local market.
The business could operate 7 days a week, increasing from 5, and stay open later.
The venture was established in 2013, making the business 9 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell companies. Nevertheless, the true reason vs the one they say to you might be 2 totally different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in revenues, or a variety of various other factors. This is why it is really crucial that you not depend totally on a seller's word, yet rather, utilize the vendor's answer along with your overall due diligence. This will repaint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering things such as supplies, payroll, accounts payable, etc. Remember that in some cases this can indicate that earnings margins are too thin. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new consumers? Most times, companies have repeat clients, which develop the core of their everyday revenues. Specific variables such as new competition sprouting up around the area, roadway building and construction, and staff turn over can influence repeat consumers and also adversely influence future profits. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the greater the possibility to build a returning consumer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Just how might the regional mean family earnings effect future earnings prospects?