Listing ID: 77626
Business Overview
This automotive repair shop is very well known in the area for good honest repair work on Japanese and American cars. They also provide service on classic cars.
This business has 3 technicians and a service writer. ( 1 tech has been out for 6 months on a medical leave and is coming back in Jan).
The average sale is well over $600. Seller is willing to train buyer for 2 weeks or as needed. In business since 1994.
Financial
- Asking Price: $475,000
- Cash Flow: $200,000
- Gross Revenue: $891,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $16,000
- Inventory Included: Yes
- Established: 1994
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,500
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Great space of 5,500 sqft This business has 7 lifts, 1 a rated at 12,000lbs another is rated at 10,000 lbs. Reception
Seller will train buyer for 2 weeks
Seller is ready to retire
This business has a great following for many years
They are not doing much after market, although they have been working on many Jeeps. This could be a good area of growth.
Additional Info
The venture was started in 1994, making the business 28 years old.
The deal shall include inventory valued at $16,000, which is included in the asking price.
The company has 4 employees and is located in a building with approx. square footage of 5,500 sq ft.
The property is leased by the business for $7,587 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. Nevertheless, the true factor vs the one they tell you might be 2 entirely different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or an array of other reasons. This is why it is extremely important that you not depend totally on a vendor's word, however rather, utilize the vendor's solution together with your general due diligence. This will paint a more realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that profit margins are too tight. Lots of 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 think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new customers? Many times, companies have repeat consumers, which create the core of their day-to-day revenues. Specific factors such as brand-new competition growing up around the area, road building and construction, as well as personnel turn over can affect repeat consumers and adversely affect future revenues. One crucial point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the opportunity to construct a returning customer base. A final thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the local mean home income effect future income potential?
