Business Overview

The company was incorporated in 2005 by the Seller who has owned and operated the business since the beginning. Prior to the incorporation, the company started in 1988. The company has many repeat customers and also supplies to numerous automotive parts to outlets and dealerships. Three areas of revenue for the company are Jeep modifications (suspensions kits, wheels and tires), Drive line work (such as regearing axels and drive shafts) and alignments for most vehicles.

The company conducts business in the automotive industry and specializes in 4-wheel drive modifications such as:
· Repairs
· Axel repair, including re-gearing and modification
· Drive shafts
· Chassis related items
· Specialty wheels and tires
· Frontend repairs and tie rod ends
· Brakes
· Towing upgrades, including hitches, wiring, and tow bars
· Running boards and Tonneau covers
· Airlift airbags (preferred installer)
· Jeep tops
· Capability to safely repair and modify any year truck or jeep.

Good relationship with many local businesses that support each other and have developed trade of business specialties. Considered essential business b/c they supply drive line to critical customers such as police and fire departments. Do alignments on smaller ambulance.

The company has an average sales revenue of approximately ($482,000) four hundred eighty-two thousand dollars a year with an average annual net income of approximately ($147,000) one hundred forty-seven thousand dollars. The company has a national presence and a highly respected reputation with all customers and manufacturers. This is a company recognized for selling quality solutions, not just products.
Seller is willing to support the Buyer in transition of ownership and training.

Financial

  • Asking Price: $1,150,000
  • Cash Flow: N/A
  • Gross Revenue: $482,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $35,000
  • Inventory Included: Yes
  • Established: 2005

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:37,743
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The property includes land, parking lot, an improved metal building utilized as a combination office, shop, showroom, and apartment building. The total site area of approximately 37,743 square feet.

Is Support & Training Included:

The Seller will provide training and orderly turnover to the new owner, at future negotiated rate, between buyer/seller.

Purpose For Selling:

Retirement

Pros and Cons:

This specialized industry does not have any direct competitors locally.

Opportunities and Growth:

There is quick growth opportunity in 5 main areas; accessories for jeeps and trucks, develop and execute a marketing plan for new customers outside the local area, update and improve the website, room to expand shop and number of employees in order to take on more work, and provide spray on bed liners.

Additional Info

The venture was started in 2005, making the business 17 years old.
The deal shall include inventory valued at $35,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell operating businesses. Nevertheless, the real factor and the one they say to you might be 2 completely different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or an array of other factors. This is why it is really essential that you not depend absolutely on a seller's word, yet rather, utilize the seller's response along with your total due diligence. This will repaint a more reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that revenue margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be met or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new consumers? Many times, businesses have repeat clients, which develop the core of their everyday profits. Particular aspects such as brand-new competitors sprouting up around the area, road building, as well as personnel turnover can impact repeat clients and also adversely influence future incomes. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the better the possibility to develop a returning customer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it located on the outside border of town? Just how might the neighborhood mean household earnings influence future earnings prospects?