Listing ID: 82962
SELLER IS EXTREMELY MOTIVATED
ALL OFFERS BEING STRONGLY CONSIDERED
OPTION 1: Buy the business and the building
$150,000 for the business valued at $338,000
$450,000 for the building valued at $450,000
OPTION 2: Buy the business and lease the building
$150,000 for the business valued at $338,000
$2767.33 per month NNN lease
Mark’s Muffler Shop is a real landmark in post Katrina history of New Orleans. Founded almost 40 years ago in 1984, this is an unparalleled opportunity to own and operate a thriving specialty exhaust and fabrication muffler shop. Experience in the auto industry is a requirement. The current owner is willing to stay on and train a new owner for an agreed upon time frame. A new owner would be stepping into a business that currently has a tremendous volume of referral and repeat business that is also growing 20% annually. This shop is currently owned and operated by one person. A younger owner could easily absorb the growth of the business immediately by hiring employees as the facilities will support it. Running this business as owner/operator or semi-absentee can both yield a strong and expedited return on your investment. This is the preferred muffler shop within a 30 mile radius with 4.8 stars on Google. A new owner should expect great success. All interested parties will need to sign the NDA.
-There are 2 racks. Could add up to 2 more
-3 employees, including owner
-Property Taxes are approx. $1900/year
-Equipment valued at $26,000 includes: 2 racks, 2 industrial grade welding machines, acetylene-oxygen industrial grade cutting and welding torches, pipe bending and fabrication machine, air compressor, snap on tool box, whole building generator, security cameras, security system (ADT)
-Inventory worth upwards of $50,000 including nuts, bolts, brackets, pipes, resonators, direct fit, universal, mufflers, catalytic converters, pipe assembly, etc.
Never been robbed once in almost 40 years. Broken into once, which was right after Katrina with no electricity and no alarm system. Other than that, the owner has always had alarms, cameras, and good neighbors. It is also on the main street with traffic always going by. This neighborhood is on an upward trend. From St. Claude to the river is the historic Holy Cross neighborhood. Renovations and new construction homes are an ongoing thing. This neighborhood has always been better than across the canal due to it being single family and double type homes and not big government project type housing.
There are unique financing options available for this area of town from the city as well as the state. This property is located in an Opportunity Zone, and it is along the area of St Claude in the 9th Ward that is part of the “Main Street” Program designed to revitalize the area. Reach out to the NOLABA and the LED for more information.
New Orleans Business Alliance
- Asking Price: $150,000
- Cash Flow: $172,000
- Gross Revenue: $776,000
- EBITDA: $97,000
- FF&E: $26,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1984
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:2,372
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1984, making the business 38 years old.
The transaction does include inventory valued at $50,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. However, the true factor and the one they tell you might be 2 absolutely different things. As an example, they might claim "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, current decrease in profits, or a variety of other factors. This is why it is extremely essential that you not count entirely on a vendor's word, but rather, make use of the seller's solution along with your overall due diligence. This will repaint a much more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses borrow money so as to cover things such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that profit margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in brand-new consumers? Many times, operating businesses have repeat consumers, which form the core of their day-to-day profits. Certain factors such as brand-new competitors growing up around the location, roadway construction, and employee turnover can impact repeat clients as well as negatively affect future profits. One important point to think about is the area 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 higher the chance to construct a returning customer base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the local typical house earnings influence future earnings potential?