Listing ID: 76812
Business Overview
This is a RARE opportunity to acquire a luxury auto body & paint shop in Los Angeles! The Business is a well-established, full-service high end collision repair & paint shop that draws clients from the Los Angeles, Venture & Orange Counties. The Shop is located in a high traffic intersection in L.A., where it has been a repair shop for over 5 decades. The Business is semi-absentee owner operated, completely turn-key, and
fully staffed with highly trained, long-term, and dedicated employees. Renowned for its elite-concierge level customer service and 5-star quality work, the Business has built strong relationships with several luxury dealerships over the past 2 decades. The Business provides full-service collision repair & paint services, as well as additional collision related mechanical repairs. The Seller states insurance claims represent 75% of revenue with the remaining 25% being customer direct pay. The Paint Shop has a highly coveted grandfathered down draft spray booth system with a heater. Included in the sale is one work van, one security car, and approximately $200K in A/R, $220K in inventory, and $895K in FF&E. The business requires an AQMD, EPA and LA City Spray Booth licenses for operation. Per the Seller, these licenses can be transferred, with transfer fees estimated at $10K in total. The Business experienced a Covid related decline in 2020, however it bounced back to pre-Covid levels in 2021.This opportunity is ideal for an existing auto repair shop looking to expand into the luxury market or increase its footprint in L.A. or a buyer from outside the L.A. market looking to expand into the region. The Business has previously not engaged in advertising or social media efforts offering a prime growth opportunity for a marketing & social media savvy buyer. This opportunity is ideal for an existing auto repair shop looking to expand into the luxury market, increase its footprint in L.A. or a buyer from outside the L.A. area looking to expand into the region! NDA and proof of funds are required for this highly confidential listing. Inquire Now! Email inquiries to: ddube@fcbb.com
Financial
- Asking Price: $4,900,000
- Cash Flow: $1,382,906
- Gross Revenue: $4,288,491
- EBITDA: N/A
- FF&E: $895,000
- Inventory: $220,000
- Inventory Included: Yes
- Established: 2004
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:6
- Furniture, Fixtures and Equipment:N/A
3 Months
Relocation
Additional Info
The venture was started in 2004, making the business 18 years old.
The transaction shall include inventory valued at $220,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell businesses. Nonetheless, the genuine reason and the one they say to you might be 2 completely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or a range of other reasons. This is why it is extremely essential that you not rely completely on a vendor's word, however instead, use the vendor's solution in conjunction with your overall due diligence. This will repaint a more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover items like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that revenue margins are too tight. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new consumers? Often times, companies have repeat clients, which create the core of their everyday revenues. Specific factors such as brand-new competition growing up around the location, roadway building, and staff turn over can affect repeat clients and negatively impact future profits. One essential point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to construct a returning customer base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood average house income impact future income potential?
