Listing ID: 74982
Easy-to-run automotive service business that has been established for over 30 years. Great, long-standing customer relationships. Strong management infrastructure and over 100 employees. This is a terrific cash flow business with footprints in both Tucson and Phoenix.
- Asking Price: $7,950,000
- Cash Flow: $2,026,944
- Gross Revenue: $9,127,121
- EBITDA: $2,026,944
- FF&E: $10,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:130
- Furniture, Fixtures and Equipment:N/A
Up to 30 days of training
The company was started in 1987, making the business 35 years old.
The business has 130 FT employees and is situated in a building with approx. square footage of 1,200 sq ft.
The property is leased by the business for $1,800 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell businesses. Nevertheless, the true factor and the one they tell you might be 2 absolutely different things. For instance, they might claim "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be reasons to try to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or a variety of other reasons. This is why it is extremely important that you not depend entirely on a seller's word, however instead, make use of the seller's answer combined with your overall due diligence. This will paint a much more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering points such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that profit margins are too tight. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new clients? Many times, companies have repeat clients, which develop the core of their day-to-day profits. Specific factors such as brand-new competitors growing up around the location, road building, as well as employee turn over can influence repeat customers and also adversely impact future profits. One vital point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the higher the chance to construct a returning consumer base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood average household earnings effect future income prospects?