Business Overview

Located off a busy street in the heart of Pierce County for 11 years, this truck repair and service shop is priced to sell as the owner wishes to retire! This business specializes in heavy, medium and light duty truck and trailer repair, but also provides full-service maintenance and truck repair ranging from oil & filter changes, safety inspections, tune-ups, transmission services, brake services, tire rotations and battery services. The strengths of the business include efficient and personalized service, a clean and spacious building, competitive pricing, accessible location, and a CDL driver to transport trucks from customers yards to the shop and return them after repairs are complete. In addition, the owner has added two ASE master certified technicians. The listing price includes $80,000 of inventory, $128,000 of FF&E and a very competitive lease of $6,556/month. The business has 5 service bays located in an 8,800 sq ft. commercial building. Per owner’s financials, sales were over $700,000 in 2021 with $133,000 in seller discretionary earnings. There are also 4 full time employees and 1 Manager. The owner will offer 4 weeks training to ensure a smooth transition. This is a great opportunity for an investor or owner-operator to purchase a profitable business with an outstanding reputation in the greater Tacoma and Southsound area.

Financial

  • Asking Price: $305,000
  • Cash Flow: $134,000
  • Gross Revenue: $714,000
  • EBITDA: N/A
  • FF&E: $128,000
  • Inventory: $80,000
  • Inventory Included: Yes
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:8,800
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This truck maintenance shop started through a purchase of a repair shop asset that had been closed down taking over the business which had been operating for twenty plus years; This Truck Maintenance Shop was born with three people: two technicians and a office worker. Since then, the business has added a CDL driver to transport trucks from customers yards to the shop and return them after repairs are complete. In addition, the owner added two ASE master certified technicians. Through the years, the business has grown into a solid operation and has always relied on client referrals for business.

Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Pros and Cons:

The Truck Repair industry consists of shops providing truck repair and maintenance services to consumer-grade and commercial trucks in medium and heavy-duty grades. Industry operators specialize in and provide a variety of services, including transmission, exhaust, engine and brake repair. Truck repair mechanics also provide general maintenance, oil change and preventative-care services. The Truck Repair industry will likely accelerate over the five years to 2026, as robust economic growth in the wake of the COVID-19 (coronavirus) pandemic is expected to occur in tandem with new trucks purchased during the previous period needing repairs. Corporate profit and disposable income are anticipated to grow over the next five years, providing the industry with growth potential in both the personal and commercial truck repair segments. Industry operators are expected to benefit from an increase in outsourcing among trucking fleet operators. As trucks drive longer distances, more repair and maintenance services will be needed to keep trucks on the road. Consequently, growth in total vehicle miles typically bolsters demand for truck repair services provided by this industry. Total vehicle miles are expected to increase in 2021 and beyond, representing a potential opportunity for the industry.

Additional Info

The business was founded in 2010, making the business 12 years old.
The deal shall include inventory valued at $80,000, which is included in the listing price.

The business has 4 employees and is situated in a building with approx. square footage of 8,800 sq ft.
The real estate is leased by the business for $6,556 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. Nevertheless, the genuine reason and the one they say to you may be 2 completely different things. For instance, they may say "I have too many other commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of various other reasons. This is why it is really vital that you not count completely on a seller's word, but rather, utilize the vendor's answer along with your total due diligence. This will paint an extra sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that profit margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area bring in brand-new consumers? Often times, businesses have repeat clients, which develop the core of their everyday earnings. Certain factors such as new competition sprouting up around the location, road construction, and employee turn over can impact repeat customers and also adversely impact future profits. One vital thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the higher the opportunity to construct a returning customer base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the regional typical household earnings impact future income prospects?