Listing ID: 82549
Business Overview
Stable revenues and 20% profit margins, adding weekend hours could easily boost sales! Situated in the Eastern Sacramento Metro of California, listing specializes in automotive repairs and vehicle maintenance assistance for customers of their surrounding radius. Started in 1951, company has provided to high online ratings and reviews, transmission jobs and drive train services; from part replacements to oil changes and other ventures. The facility measuring 5,000 square feet features approximately 4,500 sq. ft. of shop space plus 500 sq. ft. used for office and waiting areas. Property available for purchase if desired. Experienced and reliable personnel of 5 nonunion employees agree to remain post-purchase and continue streamlined operations. Approaching retirement, seller will be available for a smooth transition to acclimate a new ownership. Through their website and moderate forms of digital marketing, such as an email ad program with many subscribers, referral sources are backed by a large, recurring client base. While Total Revenues for 2020 reached $564,000 alongside Seller Discretionary Earnings of $133,000; last year saw Gross Sales of $550,000 with similar Profit Margin percentages! This is a great add-on opportunity for another shop in Northern California, contact IAG today!
Financial
- Asking Price: $375,000
- Cash Flow: $133,000
- Gross Revenue: $564,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1950
Detailed Information
- 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
Property measuring 5,000+/- square feet is available for Lease only.
Smooth Owner Transition period to acclimate ownership.
Approaching retirement and/or pursuing other interests.
Additional Info
The venture was founded in 1950, making the business 72 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nonetheless, the genuine factor and the one they say to you might be 2 totally different things. As an example, they may state "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, current decrease in earnings, or an array of various other reasons. This is why it is extremely vital that you not count completely on a seller's word, yet instead, make use of the vendor's answer together with your overall due diligence. This will paint a much more reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover things like supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that revenue margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in brand-new clients? Many times, businesses have repeat clients, which create the core of their daily revenues. Specific aspects such as new competitors sprouting up around the location, roadway building and construction, and also personnel turnover can impact repeat consumers as well as adversely impact future earnings. One crucial point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the better the opportunity to build a returning consumer base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? How might the neighborhood median home earnings influence future income prospects?
