Listing ID: 84152
Established in 2007 this south of Boston specialty auto dealer has built a tremendous niche boasting YOY consistent revenue. 90% of revenue is derived from the company’s sales of quality pre-owned vehicles.
The dealership is located in a strategic location on 2+ acre site with service bay and a 64-car dealer license. No experience is required, key employee (mechanic) willing to stay on for new ownership. Historic revenues are extremely consistent averaging approximately $3M annually.
- Asking Price: $400,000
- Cash Flow: $206,000
- Gross Revenue: $2,999,058
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
5000 SF building on 2+ acres with 16' over head door
available for reasonable transition period post close
Expand into other lines, cons - inventory shortage
The venture was started in 2007, making the business 15 years old.
The business has 3 employees and is situated in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell operating businesses. However, the real factor and the one they tell you might be 2 absolutely different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be excuses to try to hide the reality of altering demographics, increased competition, current decrease in earnings, or a range of other factors. This is why it is extremely crucial that you not count completely on a seller's word, however instead, utilize the vendor's solution combined with your total due diligence. This will paint an extra realistic image 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 have reason to consider this when valuating/preparing your deal. Numerous companies borrow money in order to cover things like stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that revenue margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new clients? Most times, companies have repeat customers, which form the core of their daily revenues. Specific factors such as new competition growing up around the location, roadway building and construction, and staff turn over can impact repeat consumers and also negatively influence future incomes. One crucial thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the greater the chance to build a returning consumer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Exactly how might the neighborhood average household earnings effect future revenue prospects?