Listing ID: 76138
Independent auto body shop for sale in northern Colorado. Seller will consider selling the real estate if buyer is interested in the business and the property.
The coronavirus pandemic had a heavy impact on the auto body industry, but this well-established shop, which has been in business for decades, has endured. The efficiency and quality of the work performed in this business helps it to stand out among the competition.
Originally established in the 1980’s, this shop, owned and operated by its current owner for over 25 years, has been a very stable and profitable operation. While the pandemic had significant impact on the business, the owner managed to keep it profitable even while keeping his personnel on board and paid full-time wages. The pandemic caused slow days, weeks and months, but the business has begun a come back toward pre-pandemic levels. Cash flow presented includes an adjustment for an estimated impact of the pandemic.
Very well experienced staff in place, which is of considerable benefit for a new owner. Business location is along a well-traveled roadway. Seller willing to provide extended transition assistance if desired.
Business was established nearly 40 years ago; purchased by current owner about 25 years ago.
The industry has various competitors, but this shop has a reputation for great quality and service in the area.
In an industry in which volume can be driven by circumstances not under your control, growth is established in the long term by building a reputation, which is strong for this long-established business. Population growth in the area provides a stable growth environment as well.
- Asking Price: $510,000
- Cash Flow: $233,494
- Gross Revenue: $654,448
- 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:5,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The company has 4 employees and resides in a building with estimated square footage of 5,000 sq ft.
The property is leased by the company for $6,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell operating businesses. Nevertheless, the true reason and the one they say to you might be 2 totally different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or a variety of various other factors. This is why it is really important that you not count totally on a seller's word, however instead, make use of the seller's solution combined with your total due diligence. This will paint a much more sensible image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that earnings margins are too tight. Numerous 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 think about. 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 fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new clients? Most times, operating businesses have repeat consumers, which form the core of their everyday earnings. Certain factors such as brand-new competitors sprouting up around the location, roadway construction, and employee turnover can impact repeat consumers as well as negatively affect future earnings. One crucial point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the better the chance to build a returning client base. A last idea is the general area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood typical house income influence future revenue potential?