Listing ID: 83830
Don’t miss this rare opportunity to own a successful and profitable auto repair facility. The Company has been established and locally owned since 1991.
The Company has one of the highest customer satisfaction rates in the industry of over 95%.
Their exceptional service and local reputation are the reason families throughout the area continue to send their vehicles to this company. The company has recently invested in newer state-of-the-art equipment.
The owner is looking forward to retirement and is ready to pass the baton to a new owner and assist for a smooth transition.
Notes: Overall owner’s benefit from the auto repair business and the rental income from the ownership of the real property is estimated to be $414K in 2021.
- Asking Price: $1,100,000
- Cash Flow: N/A
- Gross Revenue: $1,281,985
- EBITDA: $413,836
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1991
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
INDUSTRY TRENDS (1) • The average auto repair shop has about 4-5 employees and generates $709,000 in annual revenue. • The automobile repair industry includes 78,600 firms that operate 82,500 shops, employ 345,600 workers, and generate $55 billion in annual sales. • The auto repair industry is separate from dealerships that provide repair services as well as the aftermarket industry, which manufactures and supplies components for vehicle repair. • The automobile repair industry is highly fragmented. A vast majority of independent service shops are family-owned. • The average car is 12.1 years old. A shift toward older vehicles tends to benefit the auto repair industry, as it indicates customers are more likely to take them to a mechanic for service. (1) Source: Vertical IQ – Auto Repair Shops
The company was founded in 1991, making the business 31 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell companies. However, the true reason vs the one they say to you may be 2 absolutely different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is extremely crucial that you not rely entirely on a vendor's word, yet instead, utilize the seller's response together with your general due diligence. This will repaint an extra practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. 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 sometimes this can mean that revenue margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that should be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract brand-new customers? Often times, companies have repeat customers, which create the core of their day-to-day profits. Specific aspects such as brand-new competitors growing up around the area, roadway construction, and also staff turnover can impact repeat clients and adversely influence future earnings. One vital thing to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the greater the chance to construct a returning client base. A last idea is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the neighborhood mean family income effect future revenue prospects?