Listing ID: 79043
This is an excellent opportunity to purchase a long-established and profitable auto detail and special interest, high quality, auto sales business. A potential buyer could maintain the current business model very successfully and introduce other auto related products and services that would give extra value to the already large customer base. Located in a high visibility location with high traffic counts right in front of the business. This business is now serving the third generation customers.
The business with $49,000 worth of furniture, fixtures and equipment, good will, trained staff, non-compete agreement, long term lease and training to a new owner are available for $250,000 plus, the cost of accessories and supplies. The cost of accessories and supplies ranges from $100 to $500. A prospective buyer has the opportunity to purchase the current inventory of vehicles for sale as part of the business purchase, however, it is not a contingency of the sale. The vehicle inventory value ranges between $100,000 to $250,000.
- Asking Price: $250,000
- Cash Flow: $111,068
- Gross Revenue: $1,176,731
- EBITDA: N/A
- FF&E: $49,000
- Inventory: $500
- Inventory Included: N/A
- Established: N/A
The business operates in a 4200 sq. ft. leased facility with great street visibility and plenty of customer parking.
Support and training during the transition is available
The transaction won't include inventory valued at $500*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell businesses. Nevertheless, the true reason and the one they tell you may be 2 completely different things. As an example, they may state "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competition, current decrease in incomes, or a variety of various other reasons. This is why it is extremely crucial that you not count absolutely on a vendor's word, but instead, use the vendor's answer together with your general due diligence. This will repaint an extra sensible image of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover items like stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day revenues. Certain elements such as brand-new competition growing up around the area, roadway construction, as well as personnel turnover can influence repeat consumers as well as adversely affect future revenues. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the chance to build a returning customer base. A final thought is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the regional typical house income effect future earnings potential?