Listing ID: 66589
This auto repair shop serves two successful locations in the community, offering all aspects of expert automotive repair. They have operated from the same location for 20+ years, seeing endless continued growth along with local established fleet relationships. Handling everything from a simple tune-up, complete transmission re-build to major engine overhaul.
- Asking Price: $1,200,000
- Cash Flow: $381,444
- Gross Revenue: $1,745,795
- EBITDA: N/A
- FF&E: $121,570
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1981
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The company has two excellent locations in the well established areas of the community it serves. Both locations are Stand Alone buildings in high auto traffic areas. Both locations have completely fenced in areas to store vehicles. Location A has 8 bays and is 6,000 sq. ft. with a current lease rate of $5,950 per month. Location B has 5 bays and is 5,000 sq. ft. with a current lease rate of $3,060 per month.
Will train for 2 weeks @ $0 cost. License Requirements: State Business License, City Business License. Buyer must be approved by the Franchisor.
While there are other auto repair shops in the market the Company has the longest warranty in the industry giving them an advantage over their competitors.
The market the Company serves is growing rapidly and potential for growth is excellent. The implementation of outside sales tactics would further enhance revenue growth.
This Business Is An Established Franchise
The company was founded in 1981, making the business 41 years old.
The transaction will include inventory valued at $5,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. Nevertheless, the genuine factor and the one they tell you might be 2 completely different things. As an example, they might say "I have too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be excuses to attempt to hide the reality of altering demographics, increased competition, current reduction in profits, or a variety of various other factors. This is why it is really essential that you not depend completely on a vendor's word, yet instead, make use of the seller's solution combined with your general due diligence. This will paint a more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new clients? Most times, companies have repeat consumers, which develop the core of their everyday profits. Particular aspects such as new competitors growing up around the area, road building, and also staff turn over can affect repeat clients and adversely impact future incomes. One essential thing to consider 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 regularly, the better the opportunity to develop a returning client base. A final thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood typical house income influence future revenue prospects?