Listing ID: 80470
The owners of this lucrative commercial truck repair and tire shop would like to retire. With annual growth in revenues and SDE, the business continues to thrive with 350+ loyal repeat customers and daily walk-ins. The business sale includes all FF&E and inventory as listed separately, to include all existing service equipment and vehicles. The business utilizes over 8,700 Sf of building space, with six total double length bays for service work, and a large office. The current owners will lease the space to the new business owner for a minimal lease cost of $3,000 a month. As a turn-key operation the business is ideal for a new qualified owner to take over and continue the success.
Owner has been growing for over thirty years. Not many other commercial repair shops have the convenience of location like this one does.
Owners have already consolidated previous income methods, in order to specialize where the money is. Primary repairs and routine servicing is where a majority of net income comes from.
A purpose built 8,700 SF masonry and metal roof facility located on a quarter acre fenced-in lot. Three double length open bays, a two-bay tire shop and one exterior covered bay. The site provides room for expansion, pending necessary approvals.
- Asking Price: $1,250,000
- Cash Flow: $350,801
- Gross Revenue: $1,803,381
- EBITDA: N/A
- FF&E: $100,025
- Inventory: $177,207
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,700
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 1990, making the business 32 years old.
The transaction does include inventory valued at $177,207, which is included in the requested price.
The company has 11 employees and is located in a building with estimated square footage of 8,700 sq ft.
The building is leased by the business for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell operating businesses. Nevertheless, the real factor and the one they tell you might be 2 completely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be justifications to try to hide the reality of changing demographics, increased competition, recent reduction in profits, or a variety of other reasons. This is why it is really essential that you not depend totally on a vendor's word, however rather, utilize the seller's response along with your total due diligence. This will paint a more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money in order to cover points like supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too tight. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be met or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in brand-new customers? Most times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Certain variables such as new competitors sprouting up around the area, roadway building, and also staff turnover can affect repeat consumers and adversely affect future incomes. One crucial thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the better the chance 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? Exactly how might the neighborhood median home earnings effect future revenue potential?