Listing ID: 69862
Prime Hwy Location | Real Estate Included
The personalized service and quality products are what sets this tire and wheel company apart from the rest. Their service departments specialize in alignments, shocks & struts, suspensions, oil changes, brakes, and batteries. They feature quality products from BFGoodrich® and Uniroyal® as well as many other reputable brands. The largest selection of products in the area combined with their professional service are the keys to 30+ years of service to their repeat and new customers.
This business has been a key location in Northwest Arkansas for many years. As a family operated company, the Sellers take pride in their product, workmanship and excellent customer service. As they near retirement they have made the decision to sell the business and real estate. A solid team of employees will remain in place.
This tire and wheel company has been a very highly recognized and respected business for many years. The employees are well trained from a mechanical standpoint, but they are also trained to be respectful of each individual customer and their vehicle needs.
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- Asking Price: $1,200,000
- Cash Flow: $217,599
- Gross Revenue: $936,313
- EBITDA: N/A
- FF&E: $62,000
- Inventory: $55,000
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Real Estate is included in this asking price. Valued at $600,000
The company was established in 1990, making the business 32 years old.
The deal shall include inventory valued at $55,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nonetheless, the genuine factor and the one they say to you may be 2 entirely different things. For instance, they may claim "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be excuses to try to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or a range of other factors. This is why it is really essential that you not rely entirely on a seller's word, however rather, use the vendor's response together with your total due diligence. This will repaint a much more reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover points like stock, payroll, accounts payable, and so on. Remember that sometimes this can suggest that earnings margins are too small. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their day-to-day profits. Specific variables such as brand-new competitors growing up around the area, roadway building and construction, and personnel turnover can impact repeat consumers and also adversely influence future revenues. One important point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the chance to develop a returning consumer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Exactly how might the local median home income effect future income potential?