Listing ID: 82607
Business Overview
This Automotive Dealership represents the future of car-buying and specializes in helping those individuals who require more attention during the purchase process. The owner, who has over 45 years of experience in the industry, was inspired to create a new way of selling pre-owned vehicles, one that not only informs clients of a selected vehicle’s distinct qualitative differences but also gives clients confidence in making the purchase. Educating clients has turned prospects into satisfied customers and built repeat business. Satisfying the client is the foundation and central feature of the Dealership’s business, achieved by delivering vehicles, sourced from all over the country, that match their needs and dreams. In 2021, the business has been very strong, reflecting the new dynamics of the automotive industry, which should lead to higher profits in the future.
Financial
- Asking Price: $376,000
- Cash Flow: $228,124
- Gross Revenue: $3,011,942
- EBITDA: N/A
- FF&E: $25,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2005
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:3
- Furniture, Fixtures and Equipment:N/A
The dealership operates out of a low-rise office building in close proximity to major auto dealerships and near Interstate 15 on a principal east-west commercial street that runs through Helena, the capital of Montana. Its offices are comfortable, contemporary, and fully equipped with modern technology. The office space is approximately 1600 sq. ft. with paved parking in front.
Will train for 26 weeks @ $30k. The company offers a service to clients and is appropriately licensed by the state. The ideal new owner of the business should have an established portfolio of skills in the automotive industry, from sales to administration to finance. A passion for customer service as well as good communication skills and technical ability are necessary.
Owner wishes to devote his time to community activities and retire.
There is no direct competitor in the consultative sales space in the region. There are about 14 traditional auto dealerships in Lewis and Clark County and none in the adjacent counties. National dealership chains are a source of price competition as well as websites such as AutoTrader, Cars.com, Carvana, etc.
The company has a protected, trade-marked brand and automotive consulting brokerage service that bridges the communication gap between automotive buyers and sellers. The dealership currently has a customer base of about 2000 happy customers. Sixty percent of the business comes from referrals and about seventy percent of customers are female. It is a business that can be easily expanded to grow in other locations by replicating its consulting methods and processes to take advantage of the fractured automotive market environment.
Additional Info
The venture was founded in 2005, making the business 17 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nonetheless, the true reason vs the one they say to you may be 2 totally different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of various other reasons. This is why it is really crucial that you not depend completely on a vendor's word, however rather, utilize the vendor's answer along with your general due diligence. This will repaint a more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies take out loans so as to cover points like supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too small. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new customers? Most times, companies have repeat customers, which create the core of their day-to-day profits. Specific factors such as brand-new competition sprouting up around the location, roadway building and construction, and employee turnover can affect repeat customers and negatively influence future profits. One essential point to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the better the chance to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? How might the regional typical family income influence future revenue potential?
