Business Overview

Enormous yard with two very large bays. Seller leases the space. Has a new lease with great terms that is transferable.

This auto shop has over 13 years in the DFW area and specializes in frame, suspension, and wheel alignment on foreign and domestic cars and trucks. 2021 357k, 2020 Rev 360k, 2019 Rev 300k, 2018 Rev 299k, 2017 Rev 282k. A very stable base of customers on which to grow. Seller is involved in some of the repairs. Staff is willing to stay.

Financial

  • Asking Price: $225,000
  • Cash Flow: $150,000
  • Gross Revenue: $294,344
  • EBITDA: N/A
  • FF&E: $115,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,500
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Two repair centers merged in 2014 under one owner. The current owner has developed a following of loyal customers that have seen the shop reach a 4 star Yelp rating and provided numerous testimonials on the website.

Is Support & Training Included:

2 weeks, which is not enough to learn the technical aspects of this business but is expected to be sufficient to train on the back-end and business side of the business. Owner willing to stay longer as needed to train on the mechanical aspects if that is needed. Owner works about 25 hours in the garage currently but that changes with demand.

Purpose For Selling:

retiring

Opportunities and Growth:

The shop has four bays and can easily add three full time technicians to generate more revenue. The shop location is near a major intersection and easily accessible for downtown location.

Additional Info

The company was started in 2006, making the business 16 years old.

The business has 3 employees and is located in a building with disclosed square footage of 4,500 sq ft.
The property is leased by the business for $3,500 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell companies. However, the true reason and the one they say to you might be 2 totally different things. For instance, they may claim "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in revenues, or a variety of other reasons. This is why it is very important that you not count absolutely on a vendor's word, but rather, use the vendor's response together with your overall due diligence. This will repaint a much more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that revenue margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be satisfied or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in brand-new clients? Often times, companies have repeat customers, which develop the core of their daily revenues. Specific elements such as brand-new competitors growing up around the location, roadway building, as well as staff turnover can influence repeat consumers and negatively impact future revenues. One vital point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the opportunity to develop a returning consumer base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the regional average household earnings influence future revenue potential?