Business Overview

Company Description

This listing is for a specialized automotive repair center and property. The Business has been a staple in Tulare County for generations and continues to provide the highest level of quality of service.

The Business customers include Government, Major Dealers, Agricultural and of course Retail. The Business includes the property and there is sufficient room to expand. Current facilities are large enough for an immediate expansion of the parts department.

The Business has experience exponential growth over the years yet still has room for growth. Current management is willing to stay on for a period to work through transition. Administrative and technical enjoy the work and would be willing to stay on with new owner. The Business carries little to zero debt, maintains the highest-quality equipment and is considered the leader in their specialty.

Transaction Rationale

The owners are looking toward retirement and ready to turn the reigns over to a more youthful ownership team. The Business is profitable and growing. Expansion is an option for new ownership with plenty of land to use for new facilities and services. New owners will be buying a company currently out-earning competitors and is priced accordingly.

Purchase Price

The listing price of the business including real estate, enterprise value and assets is $5,000,000. Owners would be willing to carry a portion of the purchase price and/or lease back facilities to new owners. SBA financing is available, and a handsome option given the current rates and payback terms.

Financial

  • Asking Price: $4,500,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell operating businesses. However, the true reason vs the one they say to you may be 2 absolutely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or a variety of various other factors. This is why it is extremely important that you not count completely on a vendor's word, yet instead, make use of the vendor's response together with your overall due diligence. This will repaint a much more reasonable image of the business's present situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover things such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that revenue margins are too tight. Many companies 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 commitments to take into consideration. There might 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 might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract new clients? Many times, businesses have repeat consumers, which form the core of their day-to-day revenues. Particular elements such as new competition sprouting up around the location, road building and construction, as well as personnel turn over can affect repeat customers and also adversely affect future earnings. One vital point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning consumer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? How might the regional typical home income effect future earnings prospects?