Listing ID: 67507
Outstanding Ford dealership opportunity located in beautiful Northern Michigan is available for immediate sale. This opportunity is ideal for first-time owners, dealers looking to add-on or diversify their existing brand portfolios, or for buyers looking to enjoy a smaller market store and higher quality of life. Located in a picturesque market, this community features year-round attractions from boating and golf activities in the summer to skiing and snowmobiling in the winter. And the Ford dealership business opportunity is very attractive:
Established — a seven-decade old successfully-owned family business.
Profitable — a four year average cash flow of $350,000.
Diversified — offering includes an on-site self storage business.
Facility — an updated, image-compliant facility is included in the offer price.
“Built Ford Proud” is one the strongest, most revered, and powerful automotive brands in the world and features a full line-up of stylish crossovers (Explorer), purposeful sport utilities (Bronco), iconic muscle cars (Mustang), and the best selling vehicle in the USA for over 4 decades (F-150). In addition, Ford has aggressive plans underway to launch a stable of world-class electric vehicles starting with the just launched Mustang Mach-E. Ford has historically been and continues to be one of the most sought-after franchises in the industry.
During 2020 (through November) this dealership generated almost $5 million in top-line revenue, delivered $377,000 in bottom line cash flow, and held a market leading 25.7% share of industry. After many years of successful operation, the present owners are seeking to retire and identify a new owner to take their family business to the next level.
FINANCING AVAILABLE. This business has been lender pre-qualified for the business and real estate for up to 90% financing (for 25 years) to qualified candidates subject to full underwriting. See term sheet for additional details.
Important Disclaimer …. Please note that the successful transition of this business will require approval from the Ford Motor Company. Prior successful automotive franchise ownership experience and/or automotive franchise general management experience, access to sufficient working capital, strong character profile, and a robust orientation to customer satisfaction are required approval criteria. If you personally do not possess a franchise automotive resume, you will need to have a partner (equity or non-equity) or a successful general manager who has a proven franchise automotive track record as part of your ownership proposal.
- Asking Price: $1,800,000
- Cash Flow: $377,908
- Gross Revenue: $5,023,207
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $42,082
- Inventory Included: Yes
- Established: 1949
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:18,340
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
This business is located on 4 adjacent, contiguous land parcels and situated on a busy highway carrying approx. 7,500 vehicles per day. Total acreage is 9.23 acres for the 4 parcels. The 9,200 sq. foot dealership building includes a showroom, business office, customer waiting area, parts, and service department. The dealership building was constructed in 2000 (service department in 1968) and a new showroom renovation featuring Ford image-compliant branding was completed in 2009 at a cost of $450,000. The self-storage buildings were constructed in 2001 and 2012. The self-storage operation consists of 3 separate buildings and includes 9,140 sq. footage of storage space. One Bethehem Steel building is configured as an open floor plan and ideal as a storage area for boats, trailers, motorcycles, RV's, and larger items. The other two Pole Barn structured buildings feature individualized self-storage compartments. There are a total of 30 individual storage units (10'x 20' in dimension). The offering price on the real estate is $700,000 and includes all of the land and buildings to support both the Ford dealership and self-storage businesses. The real estate was appraised for $700,000 in August 2018.
Products and services include the sale of new cars, new trucks, used vehicles, finance and insurance products, extended warranties and parts and service offerings. The self-storage business provides repeatable, re-occurring revenue with minimal oversight. All required business licenses and zoning approvals are current and valid with the appropriate city, county and state jurisdictions. Ford offers a variety of training and certification programs for both vehicle and fixed operation disciplines. Franchise approval will be required for this business transition. Candidate approval criteria will focus on prospect's reputation/character, previous business experience (prior automotive required), financial investment capacity, and customer satisfaction record/mindset.
Owners are retiring from the business.
This market has a low competitive automotive density with this business being the only local new vehicle franchise. There are a few independent used vehicle dealers as well as a NAPA Parts Store. The closest new vehicle franchise dealership is about 25 miles away.
While the dealership has demonstrated consistent, stable, and sustained profitability for decades, there is growth potential when comparing present performance to national group average performance levels. Major opportunities include: 1. Hiring and training additional sales personnel to focus on new vehicle sales 2. Implementation of a more aggressive marketing plan, including internet-based outreach. 3. Improving volume and selling gross in the parts and service departments 4. Finance and Insurance profit opportunities -- only running 12% of group on new F&I gross
This Business Is An Established Franchise
The company was started in 1949, making the business 73 years old.
The deal shall include inventory valued at $42,082, which is included in the listing price.
The business has 10 FT employees and is located in a building with approx. square footage of 18,340 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 totally different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in revenues, or a variety of other reasons. This is why it is very important that you not count totally on a seller's word, but instead, make use of the seller's solution together with your general due diligence. This will repaint an extra realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover points like stock, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new consumers? Many times, companies have repeat consumers, which form the core of their daily revenues. Particular elements such as brand-new competitors growing up around the area, roadway construction, and employee turn over can impact repeat clients and negatively impact future revenues. One crucial point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the higher the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional average family income impact future revenue prospects?