Listing ID: 82073
Brad’s Repair, a long-standing profitable auto repair business, is now for sale as it’s time to retire. Listing includes both real estate and the business. The 3,000 sq. ft. shop has 2 10×10 overhead doors and a 14×12 overhead door. The office is temperature-controlled and a mezzanine above is ideal for storage. All equipment, inventory, and customer lists are included in the sale. The current owner/operator would consider staying on as an employee or consultant if the new owner desires. Seller financing is available on the business, and lease terms are being considered for real estate.
- Asking Price: $490,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell businesses. Nonetheless, the real factor and the one they tell you might be 2 entirely different things. For instance, they may claim "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competition, recent decrease in revenues, or an array of other factors. This is why it is extremely important that you not rely absolutely on a seller's word, yet rather, make use of the vendor's answer combined with your overall due diligence. This will paint an extra reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many 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 indicate that earnings margins are too small. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new consumers? Most times, operating businesses have repeat clients, which create the core of their everyday revenues. Certain aspects such as new competitors growing up around the location, road building and construction, and personnel turn over can influence repeat clients and also adversely affect future earnings. One essential thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the greater the possibility to build a returning customer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood median family income impact future revenue potential?