Business Overview

Owners of 4X4 trucks and sport utility vehicles find the best combination of product selection, price, customer service and technical expertise at this company. The Company is the “go-to” place to personalize and enhance their vehicle’s capabilities. The highly skilled service team repairs and maintains and repairs vehicles as well, broadening the foundation for repeat business.

Financial

  • Asking Price: $990,000
  • Cash Flow: $398,621
  • Gross Revenue: $2,526,793
  • EBITDA: N/A
  • FF&E: $182,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 1985

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:8,000
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is strategically located for easy access. The 8,000 square foot facility includes a front office for sales and service, multiple service bays, inventory storage, administrative offices and other common areas. The business is fully equipped, and all assets are in good working condition. No significant capital expenditures are required over the next five years. The assets in place will support business growth.

Is Support & Training Included:

The seller will provide 120 hours of training over four weeks as part of the purchase price. The seller will be available on a consulting basis, if needed.

Purpose For Selling:

Retirement

Pros and Cons:

Competition is light with few competitors. The Company’s purchasing power enables it to complete effectively with online competitors for aftermarket products.

Opportunities and Growth:

The market for off-road accessories and performance enhancements is strong. The Company has the capacity for continued growth and the there are expansion opportunities that will leverage the Company’s strengths.

Additional Info

The company was started in 1985, making the business 37 years old.
The transaction will include inventory valued at $100,000, which is included in the suggested price.

The company has 10 employees and resides in a building with disclosed square footage of 8,000 sq ft.
The real estate is leased by the company for $10,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell businesses. Nevertheless, the true factor and the one they say to you may be 2 totally different things. For instance, they may say "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current decrease in revenues, or a variety of other reasons. This is why it is very important that you not depend absolutely on a vendor's word, however instead, use the seller's response along with your total due diligence. This will paint a more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover items such as supplies, payroll, accounts payable, and so on. Remember that sometimes this can suggest that revenue margins are too thin. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in new customers? Often times, companies have repeat clients, which create the core of their day-to-day earnings. Certain variables such as brand-new competition sprouting up around the location, road building and construction, as well as employee turn over can impact repeat clients and also adversely impact future incomes. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business often, the higher the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional average family earnings effect future earnings potential?