Business Overview

Located just across from the largest auto auction in the state. Over 10
years at the same location this business is well established with the
potential to grow even more as the current owner does very little
advertising. This is a very highly respected auto repair/tire shop with 6
bays and over 3 acres of land with plenty of parking. The owner is
retiring and willing to transition the business to its new owner.

Financial

  • Asking Price: $2,999,500
  • Cash Flow: $539,000
  • Gross Revenue: $3,461,570
  • EBITDA: N/A
  • FF&E: $125,000
  • Inventory: $6,000
  • Inventory Included: Yes
  • Established: 2009

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:5,000
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retiring

Additional Info

The company was started in 2009, making the business 13 years old.
The transaction will include inventory valued at $6,000, which is included in the requested price.

The company has 9 employees and is located in a building with approx. square footage of 5,000 sq ft.

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 tell you might be 2 absolutely different things. As an example, they may claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in profits, or an array of other factors. This is why it is really vital that you not rely absolutely on a vendor's word, yet rather, use the vendor's response in conjunction with your overall due diligence. This will paint an extra practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. 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 charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new customers? Most times, businesses have repeat clients, which develop the core of their daily earnings. Specific aspects such as brand-new competition sprouting up around the area, road building and construction, and personnel turnover can affect repeat clients and adversely influence future earnings. One vital point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the better the chance to build a returning customer base. A last idea is the general area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the regional typical household earnings influence future income prospects?