Listing ID: 82567
Business Overview
This growing automotive shop in Saginaw specializes in the transmission repair and maintenance servicing for all types of cars, light trucks, SUV’s and vans; along with retail sales of snow plow attachments, tires and custom pipe bending. The shop provides oil changes, rim welding, fuel injections, and restoration of radiators, air conditioning and electrical repairs; as well as wheel rotations and balancing of CV axels, headers, springs, and converters. Operating from a 1,200-square foot location featuring approximately 100 sq. ft. of office space and a 1,100 sq. ft. shop, the facility is leased. Additionally, landlord gives an option to acquire over one acre of property including the shop, an office building and residence for an extra $150,000. The company’s proven track record, supported by over 30 years of ongoing business, averages five stars in customer satisfaction for their wide reliability and skilled personnel of 4 nonunion employees with industry experience. With a strong local reputation and a large repeat client base, marketing efforts focus on targeting individuals within central Michigan. Total revenue was $384,491. Due to increasing income levels over the past three years, projections show $500,000 in revenue and $60,000 in Discretionary Earnings, with snow plows sales picking up the wintertime.
Financial
- Asking Price: $235,000
- Cash Flow: $60,000
- Gross Revenue: $500,000
- EBITDA: N/A
- FF&E: $55,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2017
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:12,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Property can be purchased additionally with business.
Standard Owner transitioning period.
Approaching retirement and/or pursuing other interests.
Additional Info
The venture was started in 2017, making the business 5 years old.
The company has 4 nonunion employees and is situated in a building with approx. square footage of 12,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nevertheless, the real reason and the one they say to you might be 2 completely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competition, current reduction in earnings, or a variety of other reasons. This is why it is extremely essential that you not rely totally on a vendor's word, however instead, utilize the seller's solution in conjunction with your overall due diligence. This will paint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money in order to cover items such as supplies, payroll, accounts payable, etc. Remember that occasionally this can mean that profit margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with 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 might have existing agreements with suppliers that must be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in new customers? Most times, businesses have repeat clients, which create the core of their day-to-day revenues. Certain elements such as brand-new competitors sprouting up around the location, road building and construction, as well as staff turn over can affect repeat consumers as well as adversely affect future revenues. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the possibility to construct a returning consumer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood typical household earnings impact future income potential?
