Listing ID: 77411
Listing # – 5153 LSM
Very Profitable Auto Lube and Minor Repair Service Shop For Sale.
High Profits currently with Huge Potential with additional services that this shop can offer!
The shop contains 2 bays that accommodate 2 vehicles per bay (4 vehicles total).
Seller claims around 300k/year annually gross with a NET PROFIT of 160,000!
INCREASE profits by adding SMOG SERVICES.
Located next to an Auto Mall with Brand Name Dealerships and rental car companies.
Most Dealerships DO NOT DO SMOG at the dealership and send their vehicles out to Smog Shops.
This shop is located across the street from those dealerships.
The shop offers other services like Brake Services and Tire Services as well.
This shop is truly a GOLD MINE.
The owner is relocating and is very motivated to sell.
Seller to train the new buyer.
- Asking Price: $185,000
- Cash Flow: $160,000
- Gross Revenue: $268,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: N/A
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Owner is Relocating
The business was started in 2020, making the business 2 years old.
The deal won't include inventory valued at $30,000*, which ins't included in the listing price.
The building is leased by the company for $4,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell companies. However, the real reason vs the one they tell you might be 2 entirely different things. As an example, they might say "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in profits, or an array of other reasons. This is why it is really vital that you not depend totally on a seller's word, but rather, make use of the seller's answer combined with your total due diligence. This will repaint a much more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans so as to cover points such as stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that earnings margins are too thin. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with 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 suppliers that have to be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new clients? Many times, companies have repeat customers, which form the core of their day-to-day revenues. Particular aspects such as new competitors sprouting up around the location, road building, and also staff turnover can impact repeat customers and negatively affect future incomes. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the better the opportunity to construct a returning consumer base. A final thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local average household income influence future earnings prospects?