Listing ID: 76011
With an asking price of $48,000, this is a turnkey, well-established, Automotive repair business for sale with top-of-the-line equipment, A profitable stand-alone business, or an add-on to a new or existing auto repair business. At this point, they do very little advertising and no longer have to promote to keep business at a manageable level. They stay busy five days a week with annual gross profit has consistently exceeded $100K.
After almost 10 years running this automotive repair shop, the current owner is ready to retire. It’s important to him that the buyer has strong ethics, is an honest person, and is dedicated to providing quality service.
- Asking Price: $48,000
- Cash Flow: $35,000
- Gross Revenue: $140,000
- EBITDA: N/A
- FF&E: $75,000
- Inventory: $1,000
- Inventory Included: Yes
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:15,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The company was established in 2012, making the business 10 years old.
The transaction does include inventory valued at $1,000, which is included in the asking price.
The real estate is leased by the business for $3,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nonetheless, the real reason vs the one they tell you might be 2 absolutely different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or a variety of various other factors. This is why it is really crucial that you not count entirely on a vendor's word, but rather, utilize the seller's solution together with your general due diligence. This will repaint a much more sensible image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that earnings margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract brand-new clients? Often times, operating businesses have repeat clients, which develop the core of their everyday profits. Certain variables such as new competition sprouting up around the location, roadway construction, and personnel turn over can affect repeat consumers and adversely affect future earnings. One essential thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the possibility to construct a returning client base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the local typical house earnings impact future income potential?