Listing ID: 81010
9 bay shop with additional storage bay area, approximate monthly rent of $3,500 a month, or potentially acquire the real property for approximately $300k. The Shops approximate annual gross sales are running about $950k+/-. Asking price for the business assets of this Auto & Truck service shop in Ely Nevada is $475k, or fair and reasonable offer price.
- Asking Price: $475,000
- Cash Flow: N/A
- Gross Revenue: $950,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1975
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Retiring from the Industry
The venture was started in 1975, making the business 47 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell businesses. However, the genuine reason and the one they say to you may be 2 entirely different things. For instance, they might state "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, recent reduction in revenues, or a range of other factors. This is why it is very vital that you not depend absolutely on a seller's word, however rather, utilize the vendor's solution along with your general due diligence. This will repaint a much more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover things such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that revenue margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new customers? Most times, operating businesses have repeat consumers, which form the core of their daily profits. Particular variables such as brand-new competition growing up around the location, road building, and personnel turnover can influence repeat consumers as well as adversely impact future earnings. One vital thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the greater the chance to build a returning customer base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Just how might the local typical family income impact future revenue potential?