Listing ID: 78811
This is a unique opportunity for a used auto sales and service repair business. There are many components to this offering that go hand in hand with the dealership that will be sold all together.
- Asking Price: $349,900
- 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
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. For instance, they might say "I have too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, current reduction in profits, or an array of various other reasons. This is why it is very vital that you not count totally on a seller's word, but instead, use the vendor's solution in conjunction with your total due diligence. This will repaint a much more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover things such as inventory, payroll, accounts payable, etc. Remember that in some cases this can imply that revenue margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new clients? Most times, operating businesses have repeat consumers, which develop the core of their everyday revenues. Certain aspects such as brand-new competition sprouting up around the location, roadway building and construction, and personnel turn over can affect repeat customers and also adversely influence future revenues. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business often, the higher the opportunity to construct a returning customer base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the local mean family income effect future revenue potential?