Listing ID: 67557
Excellent opportunity to own a locally owned and operated business that has been serving the Prince William County area for over 30 years. The shop is a full-service auto repair facility and approved by AAA which is a testament to their ability to meet the highest standards in vehicle care. The business employs certified repair technicians and is well-known for reliability, competency, fair prices, and shop cleanliness.
Over the years, the owners have prided themselves on being a true one stop shop for their customers by having a full-service garage that can perform virtually any service or diagnostic test. The shop offers a complimentary shuttle service and has a loaner car available as well. The customers appreciate that the employees are courteous and take the time to explain repairs in a clear and professional manner.
The business has excellent historical financial performance along with reliable and consistent cash flow. The automotive repair and maintenance market has seen healthy growth over the years with a positive future outlook and the location is ideal for a business in this industry. The owners have decided to retire after a long and successful run. They want to ensure the business continues to thrive and that their customers are in good hands. Please don’t hesitate to contact us to learn more about this opportunity.
*The revenue and cash flow numbers claimed above are an average of 2018-2020 which includes the impact of COVID, but the average annual revenue from years prior (2017-2019) is just over $400k with an average owner operated cash flow of over $105k.*
- Asking Price: $199,995
- Cash Flow: $86,340
- Gross Revenue: $393,334
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $1,500
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,600
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The repair shop is located in a densely populated area with good street visibility. There is a large commercial area in the immediate vicinity of the business and a number of residential communities nearby as well. The 3600 sq ft facility is leased for approx. $4,350mo. There are two separate drive bays each with lifts and room for 3 more vehicles to be serviced in the shop.
Seller will provide necessary training and support.
Owners are retiring.
There is standard competition for the industry. The established brand, reputation, quality of service, and competitive pricing allows this business to stand out from its competitors.
The shop does not currently work on European vehicles, but a new owner could expand the service offerings to include those makes and models. A new owner might also consider implementing a marketing and advertising plan to create awareness about the business and attract new customers. One potential area of expansion is the ability to sell used cars as the business has ample parking for over 60 vehicles and is zoned for used car sales.
The venture was founded in 1987, making the business 35 years old.
The transaction shall not include inventory valued at $1,500*, which ins't included in the requested price.
The company has 2 employees and resides in a building with approx. square footage of 3,600 sq ft.
The property is leased by the business for $4,350 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. Nonetheless, the real reason vs the one they tell you might be 2 entirely different things. For instance, they might state "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might just be excuses to try to hide the reality of changing demographics, increased competition, recent decrease in incomes, or a range of other reasons. This is why it is really essential that you not count entirely on a vendor's word, but instead, make use of the seller's response together with your overall due diligence. This will paint a more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that revenue margins are too small. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract brand-new consumers? Most times, operating businesses have repeat customers, which develop the core of their everyday earnings. Particular elements such as new competitors sprouting up around the area, roadway construction, as well as employee turnover can influence repeat consumers and also adversely impact future profits. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the chance to develop a returning customer base. A last idea is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? How might the neighborhood typical household earnings effect future income potential?