Listing ID: 82531
Long standing Transmission Repair shop located at busy Johnson County intersection. All shop equipment, miscellaneous supplies and owner’s tools of at least $45,000 are included in the asking price. 4 Bays with lifts. Reclaimed oil furnace keeps utilities low in the winter time. This shop is ideal for someone knowledgeable of the auto repair business.
- Asking Price: $125,000
- Cash Flow: $50,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $400
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The deal won't include inventory valued at $400*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell operating businesses. However, the genuine reason vs the one they say to you may be 2 absolutely different things. As an example, they might state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in incomes, or a range of other factors. This is why it is extremely vital that you not depend totally on a seller's word, yet rather, make use of the vendor's answer along with your total due diligence. This will paint a more reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that earnings margins are too thin. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new clients? Most times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Certain variables such as brand-new competition sprouting up around the area, roadway building and construction, and also personnel turnover can impact repeat consumers and also adversely impact future earnings. One crucial point to think about is the location 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 often, the higher the possibility to develop a returning client base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the local average home earnings effect future revenue potential?