Listing ID: 72736
Seller financing available for the qualified buyer.
Real estate is included in the asking price.
A great opportunity to own a well-established and flourishing auto service and repair business with decades of experience serving and delighting their customers in the fast growing Southern Oregon markets. They have expert technicians that can help almost any automotive make or model, foreign and domestic.
- Asking Price: $3,849,950
- Cash Flow: $213,300
- Gross Revenue: $1,794,683
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:18
- Furniture, Fixtures and Equipment:N/A
The business was established in 2004, making the business 18 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. However, the real factor vs the one they say to you might be 2 entirely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be excuses to try to hide the reality of changing demographics, increased competition, recent decrease in earnings, or a variety of other factors. This is why it is extremely essential that you not rely entirely on a vendor's word, yet rather, use the vendor's answer together with your general due diligence. This will paint a more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover items such as stock, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new customers? Many times, operating businesses have repeat customers, which form the core of their day-to-day profits. Certain elements such as new competitors sprouting up around the area, roadway construction, as well as staff turnover can impact repeat clients as well as adversely influence future earnings. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning customer base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the regional mean family earnings influence future income prospects?