Listing ID: 67386
This successful used auto sales lot with a 6-bay repair and inspection service center has been in business in NVA for 10-years. Located in a commercial warehouse the service center has a tall single garage door with approximately 5,000 sqft of space, high ceilings, and 6 lifts giving ample space for repair work and equipment. Outside, there are 50 parking spaces for car sales inventory..
The owner has two used care sellers who rent outdoor 20 of the outdoor spaces for their inventory and their rent plus repair business pays all the rent and utilities.
All technicians will stay with the business. Technicians are paid on a flat rate for each ticket and receive commission on parts sales. Included with the sale is all equipment websites, phone numbers and state inspection and exhaust repair license. However, the buyer must have a auto dealer license or immediately apply for a license and owner will stay until it is approved.
Business was started in 2011 and has made a profit each year. The Owner has two other businesses and for the last 5 years has operated this business as an absentee owner.
There are many competitors in the care sale and repair business. Having a repair and inspection station along with the car sales lot gives this business a distinct advantage.
- Asking Price: $599,000
- Cash Flow: $425,000
- Gross Revenue: $4,200,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $10,000
- Inventory Included: N/A
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
other business interest
The venture was founded in 2011, making the business 11 years old.
The deal won't include inventory valued at $10,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell businesses. Nevertheless, the genuine factor and the one they say to you may be 2 completely different things. For instance, they might claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be excuses to try to conceal the reality of changing demographics, increased competition, current decrease in profits, or a variety of other factors. This is why it is extremely vital that you not rely completely on a seller's word, but rather, use the seller's response combined with your overall due diligence. This will paint a much more realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that profit margins are too small. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract new clients? Many times, businesses have repeat clients, which develop the core of their daily profits. Specific aspects such as brand-new competition sprouting up around the location, roadway building, and also personnel turnover can impact repeat consumers and negatively influence future earnings. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the better the opportunity to build a returning customer base. A final idea is the general area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? Exactly how might the local average home income effect future income potential?