Business Overview

Automotive Machine & Engine Shop. One of the most successful engine shops in the Pacific North West.
Withstanding decades of economic changes, this machine shop has grown to be a regional go-to for engine repair and refurbishment. With strong brand name recognition and word of mouth between engine builders ensures a constant work flow. This shop also provides all the necessary equipment for full engine rebuilding with fully owned machines.

Financial

  • Asking Price: $150,000
  • Cash Flow: $131,889
  • Gross Revenue: $282,000
  • EBITDA: $131,889
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

retiring

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell companies. Nonetheless, the true reason vs the one they tell you might be 2 entirely 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 stand. But, for some, these might just be justifications to attempt to hide the reality of altering demographics, increased competitors, recent reduction in incomes, or a variety of various other factors. This is why it is very essential that you not depend completely on a vendor's word, but rather, use the vendor's solution together with your general due diligence. This will paint a much more sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that profit margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to 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 contracts with vendors that should be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in brand-new clients? Often times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Specific elements such as new competition growing up around the area, roadway building and construction, and also staff turnover can impact repeat consumers and also negatively impact future profits. One important point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the higher the possibility to construct a returning customer base. A last thought is the basic area demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Just how might the regional average house earnings influence future income potential?