Business Overview

After 9 decades selling and satisfying customers, this well established, successful automotive business is offered for sale to the motivated buyer seeking a proven winner. The operation has become a respected hallmark in the community and is well known and respected for delivering a unique, customer-driven experience. It’s a simple success formula: this dealership has been committed to giving drivers from across the NE Pennsylvania Region the best in customer service, with a top-notch selection of brand-new vehicles to choose from, as well as an extensive inventory of pre-owned crossover, SUV and trucks … all delivered with a passion for customer satisfaction and owner loyalty.

The business features products from one of the most iconic, well-known, and popular automotive brands, the Ford Motor Company. This incredible line-up of best-selling vehicles covers the full spectrum of consumer tastes from the Built Ford Tough F-Series pick-ups, the popular Mustang pony car, the class-leading Explorer SUV, and the recently launched off-road Bronco.

Over the last 3 years, the business has averaged over $12 million in top line revenue and generated adjusted average annual cash flow of $346,000. The business is the definition of a turn-key operation: 90 year plus legacy, professional management team, loyal, repeat customers, solid profitability, great facility & location, and representing an in high-demand, exceptional quality automotive brand.

SPECIAL FINANCING AVAILABLE … This business has been lender pre-qualified and available with an attractive financing package. Applicants must qualify and undergo full underwriting. Term sheet details are included in the marketing material.

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: $2,675,000
  • Cash Flow: $215,182
  • Gross Revenue: $11,378,488
  • EBITDA: N/A
  • FF&E: $413,959
  • Inventory: $274,859
  • Inventory Included: Yes
  • Established: 1930

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:25,816
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is located at the intersection of two major state traffic arteries and situated only 55 miles from a large and growing metropolitan population base. The facility is well positioned for visibility and accessibility with abundant convenient customer parking and vehicle display/storage. The 25,816 square facility resides on 7.44 acres acres of land, and buildings include a showroom, service department (with 12 stalls), and body shop. The real estate is offered for $1,400,000 (most recently appraised in 2017).

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. Products and services include the sale of new cars, new trucks, new utilities, used vehicles, finance and insurance products, extended warranties and parts and service offerings. All required business licenses and zoning approvals are current and valid with the appropriate municipal jurisdictions. Ford offers a variety of training and certification programs for both vehicle and fixed operations disciplines. All candidates will be need to obtain factory approvals following completion of an executed purchase agreement.

Purpose For Selling:

Owner Retirement.

Pros and Cons:

The local market only includes used vehicle dealers and a NAPA parts discount store. The closest Ford dealership is 17 miles away and located further away from the metro population base. Over the last 12 months, the new vehicle industry in the market was around 550 vehicles with the Ford brand capturing a 24.8% market 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, stable, and sustained profitability for many years, there is excellent growth potential when comparing present performance to group average levels. Major opportunities include: 1. Used Truck Sales Volume and Gross 2. Body Shop Sales and Gross 3. Extended Service Plan Volume and Gross 4. Finance and Insurance Income 5. Service Gross / Service Absorption

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was started in 1930, making the business 92 years old.
The sale shall include inventory valued at $274,859, which is included in the asking price.

The company has 20 FT employees and is located in a building with approx. square footage of 25,816 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the real reason vs the one they say to you might be 2 totally different things. As an example, they may say "I have too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competitors, current decrease in revenues, or a range of various other factors. This is why it is very essential that you not count totally on a vendor's word, however rather, make use of the vendor's solution along with your general due diligence. This will paint an extra reasonable image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering points such as inventory, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract brand-new clients? Often times, operating businesses have repeat clients, which form the core of their everyday earnings. Certain aspects such as brand-new competition growing up around the location, road building, and staff turnover can influence repeat customers and also adversely affect future revenues. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the higher the possibility to construct a returning client base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? How might the local median house earnings impact future income potential?