Listing ID: 76518
Business Overview
If you are seeking an established turnkey business with both a general manager and high-performing fully trained team in-place, this is the business you have been looking for. This exceptionally well-run 3 location driving school has been serving the Denver West-Metro area for over a decade and is SBA Lender pre-qualified. A tenured team of 15 staff with all key supervisory positions filled, strong profit growth, and multiple revenue streams makes this suitable for an owner with general business and management experience. New owner will enjoy a 35 hour work week and predictable cash flow in this recession-proof business.
The owner’s commitment to service excellence across all aspects of the business is evident in both it’s brand reputation across social media platforms as well as recurring revenue from families and organizations which continue to produce a steady stream of students.
The company provides Driver’s Education (classroom) for the teen and adult market as well as enhanced adult driver’s education and testing. Classroom instruction incorporates one of the country’s leading online instruction software programs to deliver a comprehensive curriculum to its students. In addition, the State of Colorado recently ceased to administer mandated Driver’s Test for all new drivers and instead relies on the private instruction industry to administer tests. This is an additional growth segment for the business which has 2 of its locations strategically located in close proximity to State DMV facilities from which it has enjoyed additional revenue growth.
Soon after the current owner expanded the business via acquisition, they realized the opportunity to leverage back-office operations to scale and professionalize the business while migrating legacy systems to digital format to improve all aspects of the business while increasing profitability and positioning the firm for future geographic expansion.
Clients pay for services as rendered which has eliminated accounts receivables further increasing profitability.
The professionalization and standardization of operations and instruction has laid the groundwork for expansion in and beyond the Denver marketplace.
If you’ve been frustrated looking at ‘problem’ businesses, this is one for serious consideration. The reason we have sold 95% of the businesses we have brought to market is simple: we only engage with quality businesses that have demonstrably clear financials, documented processes and procedures, high-performing teams, and a seller who is committed to fully training the new owner.
Complete details will be provided in the Confidential Business Review to qualified prospective buyers.
Financial
- Asking Price: $795,000
- Cash Flow: $259,787
- Gross Revenue: $991,359
- EBITDA: N/A
- FF&E: N/A
- Inventory: $91,645
- Inventory Included: N/A
- Established: 2011
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
The business has 3 fully staffed locations: Lakewood, Westminster, and Golden Colorado. These locations offer Driver Education, Instruction, and State-mandated Testing.
The Seller will provide 30 days of training and the option for additional consulting should it be required, on a paid basis. The tenured team will help a new owner quickly assimilate into the businesses with little to no disruption to daily operations.
The Seller is ready to move on to a larger, more complex business opportunity.
In the past the industry has been served by 'Mom and Pop' instruction providers as well as some regional firms with multiple locations. The Seller originally purchased a single-site operator and then expanded via an acquisition which added 2 offices whose locations provided the strategic advantage of being in close proximity to 2 State of Colorado DMV offices which drive ongoing and regular client traffic to the business.
A somewhat fragmented marketplace presents an opportunity for the business to expand beyond it's 3 locations while leveraging its back-office, web, and social media platforms for revenue and profit growth.
Additional Info
The business was founded in 2011, making the business 11 years old.
The deal doesn't include inventory valued at $91,645*, which ins't included in the asking price.
The company has 15 employees and resides in a building with approx. square footage of N/A sq ft.
The building is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell companies. Nevertheless, the true factor vs the one they tell you may be 2 absolutely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competitors, recent reduction in incomes, or a variety of other factors. This is why it is extremely important that you not rely totally on a seller's word, but instead, utilize the vendor's answer together with your general due diligence. This will paint an extra sensible image of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover things like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that earnings margins are too thin. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new customers? Many times, businesses have repeat consumers, which form the core of their day-to-day earnings. Specific elements such as brand-new competitors growing up around the area, roadway construction, and also personnel turnover can influence repeat consumers as well as negatively influence future incomes. One vital point 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? Clearly, the more people that see the business on a regular basis, the greater the chance to construct a returning consumer base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? How might the local typical family earnings impact future earnings potential?
