Business Overview

After almost 5 decades selling and satisfying customers, this well established, successful, and family-owned/operated automotive business is available for sale to the motivated buyer seeking a proven winner. The operation has become a respected hallmark in the community — well known for having a professional team, offering a wide range of available products and services, and taking excellent care of customers.

The business features products from one of the most well respected automotive companies, the Ford Motor Company. This incredible line-up of popular vehicles covers the full spectrum of consumer tastes from the best selling Built Ford Tough F-150, to the popular Mustang pony car, to the just launched family of off-road vehicles, the iconic Bronco SUVs. The list goes on … Explorer, Escape, Ranger are all award winners and the all-new Maverick compact pick-up is priced around $20,000 and receiving strong media coverage and positive reviews. In addition, Ford is launching a full stable of all electric vehicles, including the Mustang Mach-E, the E-Transit Commercial Van, and the F-150 Lightning. The Ford line-up is one of the most popular, best selling, and highest demand vehicle lineups in the industry.

This year, despite the shortages of new vehicle inventory caused by the global microchip storage, the business is tracking to generate $8.5 million in top line revenues and deliver $138,000 in post-adjustment cash flow.

The business is the definition of a turn-key operation: almost 5 decade family legacy, professional management team, loyal, repeat customers, solid profitability, and a well-located, convenient facility. Hurry … this business is priced to sell … it’s a terrific first-time dealer opportunity or an excellent add-on brand for the established franchise automotive owner.

SPECIAL FINANCING … this business has been lender pre-qualified and available for special financing to qualified applicants pending a full underwriting review. A prospective business acquisition scenario term sheet is included in the prospectus marketing materials.

Important Note: The acquisition of this business requires franchise approval from Ford Motor Company. Character, Operational Capacity (including previous automotive franchise ownership and/or general management experience), Customer Satisfaction and Capital are required approval criteria.

Financial

  • Asking Price: $1,700,000
  • Cash Flow: $138,968
  • Gross Revenue: $8,527,247
  • EBITDA: N/A
  • FF&E: $150,000
  • Inventory: $200,000
  • Inventory Included: Yes
  • Established: 1973

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:11,574
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is located on a major state highway artery, with excellent daily traffic count, and situated only 50 miles from a large metropolitan population base -- affording both local and a larger geographic customer draw. The facility is well positioned for visibility and accessibility with abundant convenient customer parking and vehicle display/storage. The 11,574 square facility resides on 6.4 acres acres of land, and building includes a showroom, offices, parts and service departments as well as storage buildings. The real estate is offered for $850,000 or appraised value (whichever is higher).

Purpose For Selling:

Owner Retirement.

Pros and Cons:

The local market only includes used vehicle dealers and the closest Ford dealership is 26 miles away. Over the last 12 months, the new vehicle industry in the market was around 1,200 vehicles with the Ford brand capturing a market leading 17.1% industry share. Given the proximity to large metro market, the used vehicle market potential offers unlimited sales and profit opportunity.

Opportunities and Growth:

While the dealership has demonstrated consistent and sustained profitability for many years, there is excellent growth potential when comparing present performance to group average levels. Major opportunities include: 1. New and Used Vehicle Sales Volumes 2. Extended Service Plan Volume and Gross 3. Finance and Insurance Income Gross 4. Parts Sales per Unit in Operation 5. Service Sales per Unit in Operation / Service Absorption

Established Franchise:

This Business Is An Established Franchise

Additional Info

The venture was started in 1973, making the business 49 years old.
The sale shall include inventory valued at $200,000, which is included in the suggested price.

The company has 14 FT employees and is located in a building with estimated square footage of 11,574 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell operating businesses. However, the true reason and the one they say to you might be 2 absolutely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or an array of various other reasons. This is why it is extremely crucial that you not count completely on a seller's word, however rather, use the vendor's response along with your total due diligence. This will repaint an extra sensible picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money in order to cover items like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that earnings margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be fulfilled or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in brand-new clients? Often times, businesses have repeat customers, which create the core of their daily revenues. Certain variables such as brand-new competitors sprouting up around the area, roadway construction, and employee turnover can influence repeat customers as well as negatively impact future revenues. One important point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business often, the higher the possibility to develop a returning client base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Exactly how might the local average family earnings effect future revenue potential?