Business Overview

COVID has affected most businesses and this one is no different. This business has been hit particularly hard., but sales have remained rock-solid. Gross margins were hit hard because of lower productivity and the higher costs of dealing with COVID. The owner has decided to retire, but a new owner would enjoy normal profit margins after the impact of COVID is priced into the operation.

Business Description
High volume auto collision repair business, doing paintwork and collision repair services. The shop is approved by the major insurance companies. The business enjoys a solid reputation built over many decades. Experienced technicians are in place and will stay with the new owner. The current owner does no mechanical work. Rocks solid sales in the last several years.

“The employees, customers, and vendors are not aware of the sale. Due to the sensitive nature of the transaction, we require a non-disclosure agreement that can easily be signed online. Click the “Contact Seller” button above, and you will be sent a link for the non-disclosure. Call 800-905-1213 if you have any questions or concerns.”

Financial

  • Asking Price: $399,850
  • Cash Flow: $75,000
  • Gross Revenue: $1,093,270
  • EBITDA: $75,000
  • FF&E: $325,000
  • Inventory: $7,850
  • Inventory Included: N/A
  • Established: 1983

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:7,800
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

7800 square foot building fully equipped with all the equipment and tools to perform all the services the company offers.

Is Support & Training Included:

The owner will stay on for 1 month to provide a smooth transition. A longer period can be arranged on mutual agreement.

Purpose For Selling:

Retirement

Additional Info

The business was started in 1983, making the business 39 years old.
The sale doesn't include inventory valued at $7,850*, which ins't included in the suggested price.

The business has 9 employees and is situated in a building with approx. square footage of 7,800 sq ft.
The property is leased by the business for $4,583 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell operating businesses. Nevertheless, the true factor and the one they tell you may be 2 completely different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competitors, recent reduction in incomes, or an array of various other reasons. This is why it is extremely vital that you not count totally on a seller's word, however instead, utilize the seller's answer along with your overall due diligence. This will repaint a more reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that earnings margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that have to be met or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new consumers? Many times, companies have repeat customers, which develop the core of their day-to-day earnings. Specific factors such as brand-new competitors sprouting up around the area, road building, and personnel turn over can impact repeat clients and also negatively influence future revenues. One important point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the better the opportunity to construct a returning client base. A final thought is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood median home income impact future income potential?