Listing ID: 75100
The dealership has a fantastic reputation for getting hard deals done! The owner has established a $450,000.00 credit line that will transfer to purchase vehicles from auctions. The website is wonderful and will also transfer to a new owner along with the name of business. The owner will transition new buyer who has sales and or car experience. The books and records can prove income.
- Asking Price: $150,000
- Cash Flow: $240,000
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: $5,000
- Inventory: $25,000
- Inventory Included: N/A
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Back parking lot and large inside showroom totaling 5,000 sq ft.
The owner will transition all parts of the business to a new owner.
Other business interest.
Long established Location, line of credit, name, and website all transfer to a new owner.
New owners can expand locations with the same name.
The venture was founded in 2020, making the business 2 years old.
The transaction won't include inventory valued at $25,000*, which ins't included in the listing price.
The business has 3 employees and is located in a building with approx. square footage of 5,000 sq ft.
The building is leased by the business for $3,089 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. Nonetheless, the real factor vs the one they say to you may be 2 absolutely different things. As an example, they might claim "I have too many other obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or a range of other reasons. This is why it is very essential that you not rely absolutely on a seller's word, however rather, utilize the vendor's response along with your overall due diligence. This will repaint a much more sensible image 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 need to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering items like inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that profit margins are too thin. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new consumers? Most times, companies have repeat clients, which develop the core of their daily profits. Certain variables such as new competitors growing up around the area, roadway building and construction, as well as staff turnover can affect repeat customers and adversely influence future revenues. One important point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the better the opportunity to construct a returning consumer base. A final thought is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Exactly how might the regional median family earnings influence future earnings potential?