Listing ID: 77424
26 year old well established general auto repair shop in the Coachella Valley with a very loyal customer base. Shop features 1300 sq ft, 2 lifts, 1 bay door, office area, storage room and floor holds up to 6 cars overnight. Owner ready to retire. Call agent for details.
1 story location ideal for this business
- Asking Price: $115,000
- Cash Flow: $60,310
- Gross Revenue: $313,943
- EBITDA: N/A
- FF&E: $16,000
- Inventory: $3,000
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,300
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1995, making the business 27 years old.
The transaction will include inventory valued at $3,000, which is included in the listing price.
The business has 2 employees and is located in a building with disclosed square footage of 1,300 sq ft.
The real estate is leased by the business for $1,400 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell operating businesses. However, the true reason and the one they say to you may be 2 totally different things. As an example, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or a variety of other reasons. This is why it is very important that you not rely completely on a seller's word, but instead, make use of the vendor's response combined with your total due diligence. This will repaint a much more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that revenue margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also 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 agreements with vendors that should be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in brand-new customers? Many times, operating businesses have repeat clients, which create the core of their everyday profits. Specific aspects such as brand-new competitors sprouting up around the location, road construction, and also staff turnover can influence repeat customers as well as adversely influence future earnings. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the local average house income influence future revenue potential?