Listing ID: 79422
This shop under the same ownership for 50 years. There are four bays and four lifts, plus full office. There is an extensive established client list. The shop does everything from oil changes to full engine replacement. Nothing is leased and everything stays.
- Asking Price: $220,000
- Cash Flow: $100,000
- Gross Revenue: $400,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1971
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Everything in excellent shape and very clean
will stay one mth
The company was established in 1971, making the business 51 years old.
The company has 2 employees and resides in a building with estimated square footage of 4,000 sq ft.
The building is leased by the company for $3,440 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the real reason and the one they tell you might be 2 absolutely different things. For instance, they may say "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a range of other reasons. This is why it is very important that you not count entirely on a seller's word, but instead, use the vendor's answer combined with your total due diligence. This will paint an extra practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover points such as stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that profit margins are too thin. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be satisfied or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Most times, companies have repeat clients, which develop the core of their everyday revenues. Particular variables such as brand-new competitors growing up around the location, road building, and employee turn over can affect repeat clients as well as adversely influence future revenues. One essential point to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the higher the opportunity to build a returning client base. A final 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 neighborhood mean home earnings effect future earnings prospects?