Listing ID: 84134
Operating for 40+ years this south shore Auto Sales & Service center has built a tremendous reputation based on its premium customer care and service. Featuring more than 200 years of combined automotive repair experience and up-to-date technology, the company can handle basic maintenance and complex mechanical repairs for domestic and foreign autos. They also offer an excellent selection of tires from the best brands in the business. Contribution of all key staff on the service end is available so no prior service experience would be required for a buyer.
The company also has a 25-car dealer license offering pre-owned sales and vehicle location services, assisting their clients in obtaining some of the most difficult to source pre-owned vehicles. This vertical has seen robust growth over the last two years. 2021 average sale price per unit was over $29,000!
Ownership wishes to divest to retire but will ensure a stable transition.
Real estate available.
- Asking Price: $2,200,000
- Cash Flow: $750,000
- Gross Revenue: $13,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:11,000
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
Available for transition period. Term is negotiable
The business has 15 employees and resides in a building with approx. square footage of 11,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nonetheless, the real reason vs the one they say to you may be 2 absolutely different things. As an example, they may say "I have too many various obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is really vital that you not count completely on a vendor's word, but rather, utilize the seller's response in conjunction with your total due diligence. This will paint a much more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering items like stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that revenue margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new clients? Often times, operating businesses have repeat clients, which develop the core of their daily revenues. Particular factors such as brand-new competition sprouting up around the area, road construction, and staff turnover can impact repeat consumers and also negatively influence future revenues. One crucial point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, 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 populated city, or is it located on the outskirts of town? Just how might the regional median house earnings impact future revenue potential?