Listing ID: 83182
Business Overview
This is an excellent opportunity for the entrepreneur and business owner. The company has been in existence for 48 years and is organized as an LLC. The building and real estate are included in the sale. The business enjoys an excellent reputation with many repeat customers. It has solid year-to-year sales and excellent profits. The store is fully equipped and offers tire service and sales, as well as light mechanic and oil change services. The tire inventory is included in the sale. The business is in a prominent location on a busy highway, in a growing area of the state. Owner wishes to retire and will stay on during a transition period.
Financial
- Asking Price: $1,500,000
- Cash Flow: $260,000
- Gross Revenue: $990,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $100,000
- Inventory Included: Yes
- Established: 1974
Detailed Information
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Approx. 5000 sq. ft. building, fully equipped for tire service and sales, light mechanic work and oil change service.
Owner is willing to stay on for a transition period.
Owner wishes to retire.
Premier business of its kind in town
Located in a growing area, with room for expansion
Additional Info
The business was founded in 1974, making the business 48 years old.
The sale does include inventory valued at $100,000, which is included in the listing price.
The company has 4 employees and is located in a building with estimated square footage of 5,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nevertheless, the real factor vs the one they say to you might be 2 entirely different things. As an example, they might claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competition, current decrease in revenues, or a variety of other reasons. This is why it is very essential that you not count absolutely on a vendor's word, yet instead, utilize the seller's answer in conjunction with your total due diligence. This will paint a much more practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover items like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that revenue margins are too small. Many companies fall 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 consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new customers? Often times, businesses have repeat clients, which develop the core of their daily revenues. Specific aspects such as new competition sprouting up around the location, road building, as well as personnel turn over can affect repeat clients as well as negatively impact future profits. One crucial thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the higher the chance to construct a returning customer base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Exactly how might the local median family earnings influence future revenue potential?
