Business Overview

This shop has provided high quality full service high-end foreign car repair and smog service to its customers since opening in this location over 30 years ago! The shop has an excellent reputation for their services. Located in a very clean, well kept commercial area in the East Bay Tri-Valley, the shop has 6 lifts and a smog machine. All Technicians are ASE Certified and the shop is AAA approved. COVID-19 has had very little impact on the business. The new owner should have automotive tech experience or bring along an experienced tech. This business needs an active full-time owner, or the Buyer must bring an experienced Manager, this is not an Absentee Owner situation, Service Writer experience would be a plus.

Financial

  • Asking Price: $650,000
  • Cash Flow: $464,938
  • Gross Revenue: $1,417,163
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 1990

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,000
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Negotiable

Purpose For Selling:

Retirement

Additional Info

The company was founded in 1990, making the business 32 years old.
The sale shall include inventory valued at $10,000, which is included in the requested price.

The company has 4 employees and is located in a building with approx. square footage of 5,000 sq ft.
The building is leased by the company for $7,896 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell operating businesses. However, the true factor and the one they tell you might be 2 completely different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is very essential that you not rely completely on a vendor's word, but instead, use the vendor's answer in conjunction with your general due diligence. This will repaint a much more realistic picture of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering things such as stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that profit margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new customers? Many times, businesses have repeat clients, which develop the core of their day-to-day earnings. Certain variables such as brand-new competition growing up around the area, road construction, as well as staff turn over can impact repeat clients and also adversely impact future incomes. One essential point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning client base. A last thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Just how might the regional median house earnings influence future income potential?