Business Overview

This is a great opportunity for a mechanically skilled person setting out to own and build up their own automotive business. This power steering component rebuilder business has been in the family for 30 years. Over that period, power steering methods and technology have evolved from Hydraulic P/S Pumps, Gearboxes, Control Valves, & Cylinders to Hydraulic Rack & Pinions and now to Electric Power Steering (EPS). Throughout the industry’s evolution, the company’s technicians have developed and maintained their specialized expertise. Electronic Power Steering components presents the future growth opportunity however servicing component parts for earlier model vehicles represents the majority of current revenue. Additionally, automotive enthusiasts who restore or maintain much earlier models rely entirely on rebuilt steering components and the company is well known in that community for their expertise. The listing includes the property for sale. Situated in North Central Houston it sits on 1/3 acres and the total building is 5100 square feet comprised of shop, loading dock, offices and a 2-bedroom apartment above the facility. Please refer to CBB Listing #8267

Financial

  • Asking Price: $174,500
  • Cash Flow: $52,909
  • Gross Revenue: $125,688
  • EBITDA: N/A
  • FF&E: $35,000
  • Inventory: $7,000
  • Inventory Included: Yes
  • Established: 1988

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:7,100
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

7100sf freestanding facility on .33 acre of land

Is Support & Training Included:

Seller will train

Purpose For Selling:

Retirement

Opportunities and Growth:

Electronic Power Steering components presents the future growth opportunity The company has done no marketing and sales. A lucrative market would be to get other car repair shops to outsource their power steering work to the business.

Additional Info

The company was started in 1988, making the business 34 years old.
The sale will include inventory valued at $7,000, which is included in the suggested price.

The business has 1ft employees and is located in a building with estimated square footage of 7,100 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell companies. Nonetheless, the real reason vs the one they tell you might be 2 completely different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be reasons to attempt to conceal the reality of transforming demographics, increased competition, current decrease in revenues, or an array of various other reasons. This is why it is extremely crucial that you not rely entirely on a vendor's word, but instead, utilize the seller's solution along with your general due diligence. This will repaint an extra realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that earnings margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in brand-new customers? Most times, companies have repeat consumers, which develop the core of their daily earnings. Particular factors such as brand-new competitors growing up around the location, road building, and also staff turnover can affect repeat customers as well as negatively impact future profits. One essential point to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the higher the opportunity to build a returning client base. A last idea is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Just how might the local mean family income effect future earnings potential?