Listing ID: 80540
Business Overview
Founded in 2008, this full-service general automotive repair and maintenance operation has built a large and well-established customer base. EXCELLENT WORD OF MOUTH!!! 4.8 stars on Google. They have been operating from the same location over the past 14 years. This Company has an excellent reputation within the community for outstanding customer service and producing high quality work for its many satisfied customers which has lead to significant repeat business and referrals for new customers. The shop’s location is conveniently situated in the heart of Kona’s light industrial/commercial area with many parts suppliers within a stones throw which facilitates quick parts’ deliveries. An extensive 9 page list of Assets (included with the sale) contains EVERYTHING a new owner will need to continue the day to day operation, ‘as is’. Their complete auto care menu includes: general automotive repair services for both domestic and foreign vehicles, drivability issues and complex diagnostics, a/c service, brake service, oil changes, safety checks, all the way up to powertrain engine repair/replacement. They also have a fleet maintenance account with the county government. They have developed a glowing reputation in the tight-knit community for producing very honest and quality work. As a result, all their revenues have been generated without implementing traditional advertising or promotion.
This business is an excellent opportunity for an experienced ASE certified mechanic to open their first shop, grow into a larger shop, or for an out-of-area qualified buyer to acquire a strong business in paradise…Kona, Hawaii!
All books records and financials are held on-file at our office, and will promptly be made available during either an in-person meeting, or during the official “Due Diligence Period” once there has been an accepted offer.
This business has been pre-screened by a leading SBA lender. Good credit and auto shop experience may qualify for 10% down payment, a waiver of SBA fees and 3 months of payments if transaction is completed by September.
Financial
- Asking Price: $325,000
- Cash Flow: $117,000
- Gross Revenue: $630,100
- EBITDA: N/A
- FF&E: $123,000
- Inventory: $2,500
- Inventory Included: Yes
- Established: 2003
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:6,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The 'shop' is 6,000 sq. ft. and has 7 above ground lifts and 10 bay doors which makes getting vehicles in-and-out simple and efficient. There is also an air conditioned office/ waiting room, restroom, breakroom for employees, and loft for additional storage. Fully fenced & secure exterior parking can accommodate approximately 25+ vehicles.
30 days of training and support to ensure a smooth and seamless transition. Seller will assist a new buyer in securing the necessary operating permits/licenses. Additional short-term support may be offered with a separate compensation agreement (if necessary), mainly to assist in transferring relationships (clients & venders), but not solely to work on vehicles.
Retirement
Average for the industry. There is more than enough automotive mechanical work to go around, that is to keep all the good shops plenty busy.
A new owner can add a business website and/or a social media presence to utilize other marketing strategies and brand building to fuel growth other than strictly by word of mouth. A new owner could also expand the days/hours of operation plus add additional services such as tire service and alignments. Also, the hourly shop rate has remained constant for the past 3 years. A new owner may want to consider a marginal cost of living increase sometime in 2022 to add to the aging existing hourly rate.
Additional Info
The company was started in 2003, making the business 19 years old.
The transaction shall include inventory valued at $2,500, which is included in the asking price.
The company has 5 employees and is situated in a building with approx. square footage of 6,000 sq ft.
The building is leased by the company for $8,120 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell companies. Nevertheless, the genuine reason and the one they tell you might be 2 totally different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might just be reasons to attempt to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a range of various other reasons. This is why it is very important that you not rely absolutely on a vendor's word, however instead, use the vendor's answer together with your overall due diligence. This will repaint a much more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover things like stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that earnings margins are too thin. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations 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 should be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new consumers? Most times, operating businesses have repeat customers, which create the core of their everyday profits. Particular factors such as new competitors sprouting up around the location, roadway building and construction, and employee turn over can influence repeat clients as well as adversely impact future profits. One vital point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the local mean family income influence future income prospects?
