Listing ID: 69826
Over the past 30 years this Auto Body Service company has become renowned for their quality workmanship, attention to detail, fair pricing and high level of customer service. They are centrally located with excellent major street access and visibility. They average over 650 car repairs each year with 6 full time and one part time workers. An experienced manager takes care of day to day operations, including estimating, scheduling, ordering and customer service. The owner oversees operations but performs no hands on work. This business runs like a finely tuned watch!! Turnkey for the next owner.
- Asking Price: $395,000
- Cash Flow: $157,000
- Gross Revenue: $1,375,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1985
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
other business interests/semi-retirement
The business was established in 1985, making the business 37 years old.
The company has 8 employees and resides in a building with estimated square footage of 2,500 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. Nevertheless, the genuine reason and the one they tell you might be 2 totally different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, current decrease in earnings, or a variety of various other reasons. This is why it is very important that you not depend totally on a seller's word, however rather, make use of the seller's solution along with your general due diligence. This will paint a much more reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in new consumers? Most times, businesses have repeat customers, which create the core of their daily profits. Specific elements such as brand-new competition growing up around the area, road construction, as well as employee turn over can influence repeat clients as well as negatively impact future incomes. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the opportunity to construct a returning customer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood mean house income effect future income prospects?