Listing ID: 73390
This successfully established provider of automotive service and repair has proven sustainability and profitability for forty years. With two fully equipped facilities nearby, the business has a total of ten bays and ten racks.
The loyal customer base is attributed to the business’ outstanding reputation in customer service and quality repair work. The shop and skilled technicians are ASE certified. Having significant industry service and knowledge, both the Service Manager and the Service Writer are expected to stay.
Using a wide variety of advertising mediums and creative campaigns, 80% of the business’ revenue is from recurring customers. With a diverse customer base, both residential and commercial, and the ability to service gas, diesel, and hybrid cars as well as light trucks the shop has enviable stability and opportunities for further growth.
This is truly a well-run, turnkey operation that a new owner would be proud to call their own.
- Asking Price: $592,000
- Cash Flow: $286,000
- Gross Revenue: $1,200,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- 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:7
- Furniture, Fixtures and Equipment:N/A
This business consists of 2 facilities, located near each other, with a combined space of 5,700 square feet. Completely outfitted and includes 10 bays and 10 racks.
Seller is prepared to support and train a new owner.
Little competition with as strong of a reputation, longevity, and attention to customer service as this repair shop.
Seller notes that expansion could be seen by expanding the fleet business, adding diesel vehicles, and marketing to higher income families in the new residential developments nearby.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell companies. However, the genuine reason vs the one they say to you might be 2 totally different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be reasons to try to hide the reality of transforming demographics, increased competition, recent decrease in incomes, or a range of other reasons. This is why it is really important that you not count entirely on a vendor's word, yet rather, make use of the vendor's response together with your overall due diligence. This will repaint a much more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover things like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that earnings margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in brand-new clients? Most times, businesses have repeat customers, which form the core of their everyday revenues. Certain elements such as new competition sprouting up around the location, road construction, and also personnel turnover can influence repeat consumers as well as adversely affect future earnings. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the better the opportunity to develop a returning consumer base. A last idea is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood typical family income influence future income potential?