Listing ID: 72548
Great opportunity to purchase this turn-key used-car dealership in a high traffic area in a affluent town. Built over the thirty years, this seller controls inventory, costs and easily sells vehicles in every type of market. No other dealer can be in this town on this street due to zoning.
Dealership is Grandfathered in the City, and no other auto dealer can operate in the city if 30,000 people.
- Asking Price: $400,000
- Cash Flow: $180,000
- Gross Revenue: $320,000
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $100,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The deal shall include inventory valued at $100,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell companies. However, the genuine factor and the one they say to you might be 2 absolutely different things. For instance, they may claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of various other factors. This is why it is really important that you not count totally on a vendor's word, but instead, utilize the seller's solution along with your total due diligence. This will paint a more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover things like stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in brand-new clients? Often times, companies have repeat clients, which create the core of their daily revenues. Specific factors such as brand-new competition sprouting up around the area, roadway building, and also employee turnover can influence repeat customers as well as negatively impact future incomes. One important thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the greater the possibility to build a returning customer base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? How might the neighborhood typical house earnings influence future earnings prospects?