Listing ID: 77046
Looking for a large, profitable auto service and smog check business in a freestanding building with great visibility on a major boulevard in east Riverside County? The facility features 6 bays, two of which are drive-thru bays with pits to accommodate fast oil change. There is a customer waiting room with a private restroom as well as an office for the Manager’s use. The business has a high tech surveillance system equipped with 8 cameras surrounding the building.
The owner established this business in 1998 as an automotive franchise. After his 20-year franchise agreement ended in 2018, he cancelled the franchise and became an independent operator. The efficiently run, profitable business has three highly qualified employees: a Manager/Service Writer, a Master Technician, and a Licensed Smog Technician. The owner oversees the business on a part time basis.
With so many years dedicated to the success of this large auto service business, it is now time for the owner to seek retirement. A potential Buyer must note the enormous growth potential this business can potentially experience. Statistics show that this particular area is one of the fastest growing communities in Riverside County with considerable ongoing construction activity in the industrial, manufacturing, commercial and retail sectors – not to mention new housing developments.
A great opportunity! Don’t wait – Contact the Agent today.
- Asking Price: $295,000
- Cash Flow: $125,390
- Gross Revenue: $600,388
- EBITDA: N/A
- FF&E: N/A
- Inventory: $7,000
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,500
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The facility features 6 bays, two of which are drive-thru bays with pits to accommodate fast oil change. There is a customer waiting room with a private restroom as well as an office for the Manager’s use. This profitable business is located in an attractive freestanding building with excellent visibility.
The surrounding communities are currently one of the fastest growing areas in Riverside County. There is a great deal of ongoing construction in the industrial, manufacturing, warehousing, and commercial sectors - not to mention major housing developments.
The business was started in 1998, making the business 24 years old.
The deal does include inventory valued at $7,000, which is included in the listing price.
The business has 3 employees and is located in a building with disclosed square footage of 3,500 sq ft.
The real estate is leased by the company for $5,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. Nonetheless, the true reason vs the one they tell you might be 2 totally different things. As an example, they might claim "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competitors, current reduction in profits, or a variety of other factors. This is why it is extremely important that you not rely absolutely on a vendor's word, but rather, use the seller's response combined with your overall due diligence. This will paint an extra reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies borrow money in order to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that revenue margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that have to be fulfilled or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract new consumers? Often times, operating businesses have repeat clients, which create the core of their day-to-day earnings. Certain aspects such as new competition sprouting up around the location, road building, as well as employee turnover can influence repeat consumers and also negatively impact future earnings. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the better the chance to develop a returning customer base. A last idea is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the local mean house earnings influence future revenue potential?