Listing ID: 80247
The company provides machine shop and repair services for various engine types and sells related parts. Customers include end users, other repair shops, independent do-it-yourself mechanics, automotive dealerships and major corporate accounts. Other auto repair shops and dealerships are customers because they do not have the equipment or expertise to provide the unique repair services offered by the company. Customers are based in SW Georgia, SE Alabama and throughout the Chattahoochee Valley area. Experience in the automotive industry is not required for a new owner as the company can be successfully managed and grown by an experienced business person. The experienced staff will aid in a smooth ownership transition.
Details on the unique service and parts offering of the company are available in the confidential package that will be made available to qualified buyers.
2021 Revenue and Discretionary Earnings are projected to be similar to the $840K in Revenue and $116k in Discretionary Earnings that were recognized in 2020.
- Asking Price: $325,000
- Cash Flow: $115,798
- Gross Revenue: $840,329
- EBITDA: N/A
- FF&E: $170,000
- Inventory: $140,000
- Inventory Included: Yes
- Established: 1946
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Home office and sole location is a leased 8,500 sq. ft. standalone building with offices, retail parts area and service department.
Will train for 4 weeks @ $0 cost.
Owner is retiring.
The company enjoys a major competitive advantage because they offer repair services that most repair shops do not offer. The services are unique and demand for the services is strong. Customers served are as far as 50 miles from the home office.
There is strong growth potential for the company as the current marketing and advertising strategy includes only a website and limited radio advertising. Most new business is the result of word-of-mouth referrals. A more aggressive sales and marketing strategy would grow the business. The company’s unique parts, service and repair offerings, and reputation for top service and high quality repair work could be highlighted in sales and marketing campaigns. The addition of a full-time outside sales representative could acquire significant new accounts and the website could be enhanced to drive part sales and engine sales online. There is also an opportunity to open a new location(s) in the outer reaches of the geography served by the current sole location.
The business was established in 1946, making the business 76 years old.
The transaction will include inventory valued at $140,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. However, the true factor vs the one they tell you may be 2 entirely different things. As an example, they might claim "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or a variety of various other reasons. This is why it is really vital that you not depend completely on a seller's word, but rather, utilize the seller's solution in conjunction with your total due diligence. This will paint a more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover things such as stock, payroll, accounts payable, etc. Remember that occasionally this can mean that profit margins are too small. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that have to be fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new customers? Often times, companies have repeat customers, which form the core of their day-to-day profits. Particular elements such as brand-new competitors growing up around the area, road building, and also personnel turnover can affect repeat consumers and also negatively impact future incomes. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the opportunity to build a returning customer base. A last thought is the general area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the regional average household income impact future earnings prospects?