Business Overview

The automotive repair facility is a premier cutting-edge diagnostic and repair shop for passenger cars and light trucks working on all model years. Many shops will only work on vehicles that are ten-years old or less.

Whether the customer needs just basic mechanical auto repair, transmission repair or replacement, complicated diagnostics or electrical service, engine repair, or brakes, the Owner has created a one stop repair shop. With 4 service bays, one Master ASE Certified Technician, one B Level Technician, and one C level technician they work on over 572 vehicles each year with average ticket of $1,000 to $1,200.

In 2014, the Owner was able to open automotive repair shop. Since this was his second successful shop, He had an even better idea on how to make sure shop was successful.

He utilized his knowledge from previous shop and developed even better procedures, and systems that is the corner stone of Company’s success today. These improved systems and procedures have allowed the Company to develop a fantastic reputation as a premier cutting-edge diagnostic and repair shop in the Hillsboro and the surrounding area.

One of the most powerful improvements that the seller built into the core systems/procedures is that his competitors are no longer looking at the Company as competition, but as a source for advice and referral work. This strategy has really paid off, with more than 20 plus local shops referring customers to Integrity Auto.

This process that are in place are very powerful and has allowed the Company to consistently set record levels of statistics for the industry. For example, the average repair order for the month of July 2021 was $1,120.06, when the industry standard is usually between $400.00 – $500.00. With a strong industry outlook, the Company is poised for strong growth.

Financial

  • Asking Price: $180,000
  • Cash Flow: $77,002
  • Gross Revenue: $583,179
  • EBITDA: N/A
  • FF&E: $45,622
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2014

Detailed Information

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

The shop is in a free-standing building that is approximately 1,500 square feet with 2 bays outside and 2 bays inside with a small office and waiting area. The parking lot has approximately 20 spaces to park vehicles The lease is for $2,000 per month, plus NNN charges.

Is Support & Training Included:

Included in the purchase price is 30 days of training. Is willing to continue to work as a Master Mechanic either as a full time or part time basis.

Purpose For Selling:

The Owner has grown the automotive shop outside of his comfort zone.

Opportunities and Growth:

The Company has strong marketing strategies in place with both conventional, and non-conventional systems which has allowed the shop to become one of the busiest shops in town. A new Owner with more energy could hire another ASE mechanic and increase advertising to grow the business.

Additional Info

The company was established in 2014, making the business 8 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell companies. However, the genuine reason and the one they say to you may be 2 entirely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be justifications to attempt to hide the reality of altering demographics, increased competition, current reduction in earnings, or a range of various other reasons. This is why it is really essential that you not depend totally on a vendor's word, however rather, make use of the vendor's answer in conjunction with your overall due diligence. This will paint a more realistic picture of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering things such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that revenue margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location attract brand-new customers? Often times, operating businesses have repeat clients, which create the core of their day-to-day profits. Specific variables such as brand-new competitors sprouting up around the area, roadway construction, and staff turnover can influence repeat customers and negatively affect future earnings. One essential thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the chance to build a returning client base. A final idea is the general area demographics. Is the business located in a largely populated city, or is it located on the edge of town? How might the local mean home income influence future income potential?