Listing ID: 84137
Business Overview
Located in Western Massachusetts, our client is a well-established shop and is the leading retailer in its market.The Company is widely regarded for its commitment to customer service which results in a loyal customer base who frequently return for new tires and to take advantage of its many services.
It offers all major tire brands including Cooper, Nokian, Michelin, Firestone, Goodyear, Pirelli and Yokohama. Services outside of tire replacement/repair and balancing include 4-wheel alignments, brakes, shocks/struts, batteries and routine maintenance.
Financial
- Asking Price: N/A
- Cash Flow: $275,000
- Gross Revenue: $1,750,000
- EBITDA: $190,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,500
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
It operates out of a stand-alone facility that has five service bays and is located on a major roadway.
The Seller is wiling to remain with the Company for a reasonable transition period.
Seller is retiring
The Company is the leader in its market. It has a strong, young and talented team in place which will allow the Company to continue its growth trajectory.
The Company has demonstrated consistent year-over-year growth. It does limited advertising and marketing and does not engage in social media.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. However, the true factor vs the one they say to you might be 2 entirely different things. For instance, they may claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in incomes, or a range of other reasons. This is why it is extremely vital that you not count entirely on a vendor's word, but rather, use the seller's solution along with your total due diligence. This will repaint a more sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover items such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that profit margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in brand-new consumers? Often times, businesses have repeat clients, which form the core of their everyday revenues. Specific factors such as brand-new competition sprouting up around the area, roadway building and construction, as well as staff turn over can affect repeat clients and also negatively influence future revenues. One crucial point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the better the chance to build a returning client base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional mean house income influence future earnings prospects?
