Listing ID: 82787
Perfect time to be entering this recession proof industry. These three highly profitable pre-owned automobile dealerships are located in the Midwest. They are well established with an impeccable reputation in the industry. The owner has over 35 years of experience in the automobile finance industry and has built a lease to own model that exceeds national success metrics, provides customers with exceptional products, services, and industry leading profit margins. The proprietary policies and procedures of the business are very scalable on a national level. This is an exciting opportunity for the entrepreneur who is looking for an automotive business with potential nationwide growth that accelerates in economic downturns. There are 820 vehicles of which 110 are available for lease and the remainder are generating over $6M in annual revenues! Combined wholesale value is $2.9M.
- Asking Price: N/A
- Cash Flow: $989,445
- Gross Revenue: $4,215,751
- EBITDA: N/A
- FF&E: $250,000
- Inventory: $2,970,000
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:25
- Furniture, Fixtures and Equipment:N/A
Three locations are leased and transferrable. Main location and headquarters are owned, 10,000 SF (+/-) and include five service bays. Located on a major thoroughfare with high traffic count. Owner will consider sale or lease.
Owner will assist with a smooth transition of ownership.
The company was established in 1995, making the business 27 years old.
The sale does include inventory valued at $2,970,000, which is included in the listing price.
The company has 25 employees and resides in a building with disclosed square footage of N/A sq ft.
The property is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. Nonetheless, the true reason and the one they tell you may be 2 totally different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, recent reduction in profits, or a range of various other factors. This is why it is very vital that you not rely totally on a seller's word, yet instead, use the vendor's response combined with your general due diligence. This will paint an extra practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that revenue margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new clients? Most times, businesses have repeat clients, which form the core of their day-to-day revenues. Certain elements such as new competitors sprouting up around the area, road building, as well as staff turn over can impact repeat customers as well as negatively affect future revenues. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the better the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood mean household earnings influence future income potential?