Listing ID: 82851

Business Overview

Profitable car rental business for sale. This is a one owner business started in 1991. The business is currently franchised but can be operated as either a franchise or independent going forward. The owner currently has 15+/- vehicles available for rent. These vehicles are included in the price. Until recently the owner had operated with 30+/- vehicles but has reduced to limit his hours. This is a great opportunity as a stand-alone business or an add-on to a car lot. Owner is ready to retire and will assist a new owner with training and support during a transition period.

Financial

  • Asking Price: $165,000
  • Cash Flow: $19,398
  • Gross Revenue: $79,803
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $120,000
  • Inventory Included: Yes
  • Established: 1991

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Leased space with surrounding parking lot.

Is Support & Training Included:

Owner will provide training for 2 weeks to ensure a smooth ownership transition.

Purpose For Selling:

Retirement

Additional Info

The business was started in 1991, making the business 31 years old.
The deal does include inventory valued at $120,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell operating businesses. However, the true factor vs the one they tell you may be 2 totally different things. As an example, they may say "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competitors, current reduction in incomes, or an array of other reasons. This is why it is very vital that you not rely entirely on a seller's word, but instead, use the vendor's solution together with your total due diligence. This will paint a more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that revenue margins are too tight. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in brand-new clients? Often times, businesses have repeat clients, which develop the core of their everyday profits. Specific variables such as brand-new competitors growing up around the area, roadway construction, and staff turnover can influence repeat clients and also adversely influence future earnings. One vital point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business regularly, the better the chance to construct a returning client base. A last thought is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Just how might the local average home earnings effect future revenue prospects?