Listing ID: 76605
OWNER’S HEALTH IS FORCING THEM TO SELL. This well-known and award-winning automotive repair shop provides general automotive repair for foreign and domestic vehicles. Located at an enviable, visible, high-traffic location in Durango, the company attracts customers from Pagosa Springs, Mancos, Hesperus, Silverton, as well as Farmington and Aztec NM. This repair shop has a loyal customer following and a reputation for outstanding work and service.
The company has clean books, up-to-date equipment, a clean facility and outstanding reviews. This is a true turn-key opportunity with plenty of opportunities for growth. Asking price is $145,000 including inventory and well-maintained FF&E. Priced at 1X cash flow, you can’t go wrong with this opportunity.
- Asking Price: $145,000
- Cash Flow: $145,000
- Gross Revenue: $537,000
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $4,000
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Leased facility with plenty of room for expansion.
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.
There are certainly other automotive repair shops in the area, but none that have the service reputation and location as this company.
Current facility can handle additional volume. There are opportunities for a new owner to grow revenue, increase efficiencies and marketing effectiveness. Details in prospectus.
The venture was started in 1990, making the business 32 years old.
The deal does include inventory valued at $4,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell operating businesses. Nevertheless, the real reason and the one they say to you might be 2 totally different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in profits, or a variety of various other reasons. This is why it is very vital that you not depend absolutely on a seller's word, however instead, use the vendor's answer along with your total due diligence. This will paint an extra sensible picture of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies finance loans with the purpose of covering things such as supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that profit margins are too tight. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be met or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new clients? Often times, companies have repeat consumers, which create the core of their day-to-day earnings. Particular factors such as new competitors sprouting up around the location, road building and construction, and staff turn over can affect repeat clients as well as adversely impact future profits. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the higher the chance to construct a returning consumer base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? How might the neighborhood median family income impact future revenue potential?