Business Overview

Opportunity to acquire a profitable automotive dealership that has been established for close to 15 years!

The dealership generated well over $5,000,000 in sales last year (cash basis accounting) with 360+ cars sold. This year the dealership is on track to do even better!

Business can keep growing even more! Owner spends very little on advertising currently, and gives very little attention to the mechanic service part of the business.

The dealership is in a great location, with frontage off a main road in Metro Atlanta with over 25,000+ cars driving by per day.
It is a 16,000+ sq. ft. building on 3 acres+ with Showroom, Offices, Auto Service Area, and parking for 300+ vehicles.

Most of the inventory is composed of luxury cars such as Maserati, Mercedes-Benz, BMW, Range Rover and Jaguar, but also includes many other popular brands.

Terms of Accounts Receivable notes are usually short and require a high down payment. A/R is currently at $2,976,000. A//R is not included in asking price

Financial

  • Asking Price: $3,750,000
  • Cash Flow: $1,500,000
  • Gross Revenue: $5,370,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $1,185,000
  • Inventory Included: N/A
  • Established: 2007

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retiring

Additional Info

The business was started in 2007, making the business 15 years old.
The sale won't include inventory valued at $1,185,000*, which ins't included in the suggested price.

The business has 3 employees and resides in a building with estimated square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell businesses. However, the genuine factor and the one they tell you may be 2 entirely different things. As an example, they might state "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a variety of various other factors. This is why it is extremely vital that you not count totally on a vendor's word, but rather, utilize the vendor's answer combined with your overall due diligence. This will repaint an extra practical image of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that earnings margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract new customers? Many times, companies have repeat consumers, which develop the core of their daily earnings. Particular variables such as brand-new competitors sprouting up around the location, roadway building and construction, and staff turn over can influence repeat customers as well as negatively affect future earnings. One crucial point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business regularly, the greater the possibility to construct a returning consumer base. A last idea is the general location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional mean family income effect future earnings prospects?