Business Overview

This is a 38-year-old independently owned, auto service and minor repair business in Dallas, TX. The company started as specialists in Volvo service only. As driver habits evolved and Japanese cars became more popular, the company expanded into servicing Toyota, Lexus and other Japanese brands. Toyota and Lexus are now the predominant brands serviced, while Volvo continues to be an important part of the mix.

The shop occupies a very large 12,000 square foot facility on a highly visible corner, only one block from the intersection of two high-traffic roads. The landlord is willing to extend a new lease to the Buyer of this business. The shop contains twelve service bays with seven functional hydraulic lifts. It has four bulk oil tanks for a large fluid service business. The building also has a large upstairs mezzanine used for storage and parts. There is a clean, beautiful lobby complete with ample seating in the waiting room. There are also multiple private offices including a large owner’s office, storage rooms and multiple restrooms.

The price of the business includes all tools, lifts, inventory and equipment. It also includes six customer loaner vehicles. The owner has reached retirement age and wishes to sell his business at a bargain price. Covid affected the business due to fewer people driving and servicing their cars, but the business is still profitable and returning to pre-Covid levels. And, a good aggressive new operator should be able to expand the service offerings into other brands to grow the business.

A most interesting aspect is the opportunity to add car sales to this business. There is parking for 50 cars on the parking lot, so a new owner might consider auto sales as well. This is a terrific opportunity for a new owner to take over a profitable business and evolve it into a larger and more profitable business.

Financial

  • Asking Price: $149,000
  • Cash Flow: $67,696
  • Gross Revenue: $673,757
  • EBITDA: $67,696
  • FF&E: $98,000
  • Inventory: $1,000
  • Inventory Included: Yes
  • Established: 1982

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:12,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Clean, beautiful shop and office.

Is Support & Training Included:

As needed.

Purpose For Selling:

Retiring

Additional Info

The company was founded in 1982, making the business 40 years old.
The deal will include inventory valued at $1,000, which is included in the asking price.

The company has 3 employees and resides in a building with disclosed square footage of 12,000 sq ft.
The property is leased by the company for $6,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. Nonetheless, the genuine reason vs the one they tell you might be 2 entirely different things. As an example, they may say "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, current reduction in revenues, or a range of various other reasons. This is why it is really important that you not count completely on a seller's word, but rather, make use of the vendor's response along with your overall due diligence. This will paint a more reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans with the purpose of covering items like stock, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too small. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be met or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area draw in new customers? Often times, operating businesses have repeat clients, which form the core of their everyday earnings. Particular factors such as new competition growing up around the location, road construction, and staff turnover can impact repeat consumers as well as adversely affect future earnings. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the opportunity to construct a returning customer base. A final thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? How might the neighborhood mean home earnings impact future income prospects?