Listing ID: 67456
Diversified, Successful, Long Standing Auto/Equipment Repair, Tire, and Fabrication Business For Immediate Sale — “Make Money on Day 1”-
This established 36 year old business is a “one-stop shop” for all auto/equipment repairs, tires repair and sales, metal fabrication, and direct steel sales. The success formula is pretty simple: Offer Honest, Transparent Pricing and Deliver Superior Customer Service. By delivering those two attributes, the business has attracted, a large, loyal, and satisfied clientele.
The current business mix is predominately commercially oriented in nature with a mix of 60% business and 40% personal use customers with auto/tire making up 75% of overall revenue. There is a broad service menu which provides for a diversified, steady year-round cash flow. Work orders can include:
1) General Automotive Repair — transmissions, brakes, alignment
2) Equipment Repair — heavy equipment parts and service … forklifts, back-hoe, trenchers
3) Tire Repair — around the wheel … brakes, tires, rotors, balancing
4) Tire Sales — retail and wholesale tire sales
5) Fabrication — build/repair for filtration and sediment boxes, drains, grates, frames
6) Steel Sales — direct sale of steel rods and sheets and other metal products
The present owner started this business from scratch in 1985 and has built a consistently profitable $1.2M revenue operation — this business has time-tested proven results — in tough times and good times — including strong performance in the 2020 global pandemic. That’s the good news. The even better news is there is plenty of upside growth with all the success ingredients already in place — facility, equipment, inventory, customer base, supply base, and professional, trained technicians. This business and real estate is market-priced to sell quickly and will enable an excellent return on investment for the motivated buyer.
- Asking Price: $1,448,000
- Cash Flow: $235,212
- Gross Revenue: $1,298,332
- EBITDA: N/A
- FF&E: $328,052
- Inventory: $136,108
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:8,000
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
The business is situated in an excellent location ... on a growing, popular traffic corridor ... in a fully-subscribed industrial business park ... and near major highways and USA interstates. The location draws from a wide, broad, and populated geographic base because it is conveniently accessed by both commercial and personal-use customers. The building features 8,000 square footage (including 7 generous service bays) of space on a 1 acre land plot. There is plenty of customer parking and service lot storage and the favorable "General Industrial" zoning classification makes the property an excellent long-term investment with a wide variety of potential uses.
All applicable state and county licenses are in place and in good order.
Owner is retiring after 36 years in the business.
The diversified service offering of this business provides for a unique, differentiated competitive positioning. There are a number of competitive auto repair shops, tire and wheel stores, auto parts stores, and heavy equipment specialists within a 25 mile radius of this business ... but none of these competitors offer the "one stop shop" full range of service choice of this business ... those attributes in combination with transparent, honest pricing and superior customer service delivery has enabled a loyal, repeat, and satisfied owner body (for both commercial and personal use clients).
As consistently profitable as this business is today, there are some very clear avenues to enhance revenue and improve profitability: 1) Addition of Saturday service hours 2) Launch of an aggressive marketing program to attract new customers 3) Recruiting, hiring, and training of new technicians 4) The addition of new services -- paint shop, truck modification shop, audio, security products
The venture was founded in 1985, making the business 37 years old.
The sale shall include inventory valued at $136,108, which is included in the suggested price.
The company has 7 FT/1 PT employees and resides in a building with disclosed square footage of 8,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell companies. However, the real factor vs the one they tell you may be 2 absolutely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or an array of other factors. This is why it is really essential that you not count completely on a seller's word, but instead, make use of the seller's response combined with your total due diligence. This will repaint a much more practical picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover points such as stock, payroll, accounts payable, and so on. Remember that in some cases this can suggest that revenue margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new consumers? Most times, businesses have repeat customers, which form the core of their everyday profits. Specific aspects such as brand-new competition growing up around the area, roadway construction, and employee turnover can influence repeat clients as well as adversely influence future profits. One essential point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A last thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood typical household earnings effect future revenue potential?