Business Overview

NEO Business Advisors represents a well-known diesel service center business with excellent 35+ year reputation for quality service, quick turnaround and competitive pricing. The seller has built the reputation of the business since 1981 with a strong and diverse customer base in the diesel truck and heavy equipment industries serving primarily repeat and fleet customer accounts. The business provides everything from routine maintenance to comprehensive engine repair, rebuild and tuning services. The facility is equipped with a state-of-the-art, computerized diagnostic center for injector rebuild and tuning and a large service center with 5 drive-thru service bays. The staff consists of 5 employees ranging from long-tenured, senior staff with decades of industry specific knowledge to a hard-working and eager to learn, younger generation of mechanics. The business does almost no sales and marketing, maintaining revenue through word of mouth and reputation. At its peak, the business was doing over $1,500,000 in Revenue with 12-15 employees. The Seller feels this is a volume that could easily be regained with a new owner bringing new energy to the business.

COVID-19 Impact Statement: The business has been operating as an Essential Business throughout COVID-19. They have not laid off any employees and work volume has remained consistent with pre-COVID levels.

Revenue and Seller’s Discretionary Earnings (SDE) by Year
FY 2021 Revenue $ 398,722
FY 2020 Revenue $ 684,069
FY 2019 Revenue $ 727,109
FY 2018 Revenue $ 536,864

FY 2021 SDE $ 67,814
FY 2020 SDE $ 124,820
FY 2019 SDE $ 175,122
FY 2018 SDE $ 79,977

4 Year Weighted Average SDE $ 107,594
Fiscal Year is October through September.

Growth and Expansion: The owner has identified several key opportunities for growth including but not limited to hiring a dedicated salesperson, building a website, developing a strategic marketing plan, utilizing Google and Pay-Per-Click advertising to find new customers, and adding e-commerce part sales to the website. A new owner could target additional markets for fleet management, routine maintenance (like oil changes for buses), and target new high-margin customers in the performance truck market. This is also a great opportunity for a strategic buyer to add an additional location to expand their current service area.

Furniture, Fixtures, and Equipment (FF&E): FF&E of $150,000 is included in the asking price. Shop assets include a state-of-the-art, computerized diagnostic center for injector rebuild and tuning, workstations and tooling for routine maintenance, tear down and repair, solvent cleaning tanks and parts washers, engine lifts, jib cranes, inventory shelving and a well-equipped in-house machine shop capable of all machining needs except crankshafts. Office equipment includes computers, desks, chairs, file cabinets and various other office furniture and equipment.

Inventory: Inventory of $50,000 is included in the asking price to be adjusted up or down for actual amount at time of closing. Inventory includes a wide range of new, used, and rebuilt parts from gaskets to injectors and complete engine blocks that are included at cost.

Real Estate: The real estate is owned by the Seller and is available for sale or lease to buyer of the business. Asking price for the Real Estate is $500,000 (not included in asking price). The Real Estate was just appraised at $518,000.  The building is in excellent condition and includes 14,800 sq. ft. of service area, inventory storage, and office space on over 6 acres of land. The service area of the building features 10 overhead doors setup as 5 drive-thru service bays.

Questions? Please contact Nick Fares at NEO Business Advisors with any questions in regard to this business for sale listing via phone at 330-283-3900 or email at Nick@NEOBusinessAdvisors.com for more information or to request an NDA. You can also visit us online at www.NEOBusinessAdvisors.com.

Have a similar business you are looking to sell? Contact Nick Fares direct or visit our website to learn more about the selling process and how we can help sell your business.

Financial

  • Asking Price: $250,000
  • Cash Flow: $67,814
  • Gross Revenue: $398,722
  • EBITDA: N/A
  • FF&E: $150,000
  • Inventory: $50,000
  • Inventory Included: Yes
  • Established: 1981

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:14,800
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The real estate is owned by the Seller and is available for sale or lease to buyer of the business. Asking price for the Real Estate is $500,000 (not included in asking price). The Real Estate was just appraised at $518,000.  The building is in excellent condition and includes 14,800 sq. ft. of service area, inventory storage, and office space on over 6 acres of land. The service area of the building features 10 overhead doors setup as 5 drive-thru service bays.

Is Support & Training Included:

Owner is including 4 weeks transition training included in the asking price.

Purpose For Selling:

Owner is selling to retire and enjoy more time with family.

Opportunities and Growth:

The owner has identified several key opportunities for growth including but not limited to hiring a dedicated salesperson, building a website, developing a strategic marketing plan, utilizing Google and Pay-Per-Click advertising to find new customers, and adding e-commerce part sales to the website. A new owner could target additional markets for fleet management, routine maintenance (like oil changes for buses), and target new high-margin customers in the performance truck market. This is also a great opportunity for a strategic buyer to add an additional location to expand their current service area.

Additional Info

The business was started in 1981, making the business 41 years old.
The deal will include inventory valued at $50,000, which is included in the listing price.

The business has 5 employees and resides in a building with approx. square footage of 14,800 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. Nonetheless, the genuine reason and the one they tell you may be 2 completely different things. For instance, they might state "I have a lot of other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competition, current reduction in profits, or a variety of various other reasons. This is why it is really important that you not depend totally on a seller's word, however rather, make use of the seller's solution in conjunction with your total due diligence. This will paint a much more realistic image 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 have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans so as to cover points such as stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that revenue margins are too small. Many businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that have to be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new consumers? Many times, operating businesses have repeat clients, which create the core of their day-to-day profits. Specific factors such as brand-new competition growing up around the area, road building and construction, and also staff turnover can affect repeat customers as well as negatively influence future revenues. One important point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the better the chance to construct a returning consumer base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood mean home income influence future revenue potential?