Business Overview

This Business has been established for over 7 years, specializing in wheels and tires.
This very profitable business has a great website with an overall 5-star review from their customers.
All of the tools, equipment, furniture and fixtures, are included in the asking price.
This is an owner operated business. The current owner will stay on for up to 1 month to train the new owner.
This owner-operated business started in 2014 specializing in wheels/rims, tire services, and wheel alignment.
Growing automotive industry is one of the major factors driving growth of the automotive wheel rims market One of the major factors attributed to growth of the market is rising production of vehicles worldwide.
Automotive Wheel Market size exceeded USD 121 billion in 2019 and is estimated to exhibit over 5.8% CAGR from 2020 to 2026. Increasing vehicle customization activities is predicted to support the industry growth. Stringent emission and fuel economy standards are driving the requirement for the integration of lightweight component in the vehicles.

Financial

  • Asking Price: $690,000
  • Cash Flow: $308,042
  • Gross Revenue: $762,813
  • EBITDA: N/A
  • FF&E: $50,420
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2014

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

other business interests

Additional Info

The venture was started in 2014, making the business 8 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. However, the real factor vs the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competitors, current decrease in earnings, or a variety of various other factors. This is why it is extremely crucial that you not rely absolutely on a seller's word, however instead, use the seller's response along with your general due diligence. This will paint a much more realistic picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover items such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in brand-new customers? Most times, businesses have repeat consumers, which create the core of their everyday profits. Certain factors such as brand-new competitors sprouting up around the area, roadway building, and also staff turnover can influence repeat customers and also adversely affect future revenues. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the greater the chance to build a returning client base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local median family earnings impact future income potential?