Listing ID: 82215
Family owned and operated for many years. This business is located in one of Iowa’s county seat towns and brings in customers from a 30-mile radius.
The building has 5 fully equipped service bays. With the staff in place this will be an easy company for someone with automotive experience to purchase and operate.
The real estate is not included in the sale, but the business has a very favorable lease rate that can be passed on to the new owner.
- Asking Price: $300,000
- Cash Flow: $138,000
- Gross Revenue: $682,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1959
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,500
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
4500 Sq Ft garage and 2500 storage building
Owner will assist in a smooth transition.
The business was started in 1959, making the business 63 years old.
The business has 4 employees and resides in a building with disclosed square footage of 4,500 sq ft.
The property is leased by the business for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell businesses. However, the real reason and the one they say to you may be 2 entirely different things. As an example, they might say "I have way too many various obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, recent decrease in profits, or an array of other reasons. This is why it is very important that you not depend completely on a vendor's word, yet rather, use the vendor's answer together with your overall due diligence. This will paint a much more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover items such as stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that profit margins are too tight. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in brand-new customers? Most times, operating businesses have repeat clients, which form the core of their everyday earnings. Specific aspects such as brand-new competitors growing up around the location, roadway building, and also staff turn over can influence repeat customers and also adversely impact future revenues. One essential thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the greater the possibility to build a returning consumer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the neighborhood median house earnings effect future revenue prospects?