MergerPlace

Profitable, Market Leading Northern

Michigan


  • Asking Price: $1,800,000
  • Gross Income: $5,023,207
  • Cash Flow: $377,908
  • Real Estate: $700,000
  • Inventory: $42,082
  • FF&E: $100,000
  • Listing ID: #224999
  • Established: 1949
  • Employees: 10 FT

Business Description

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.


Business Details

Primary Business Category: Services - Other Services
Location: Michigan

Company Information

Year Established: 1949
Home Based: No
Franchise: Yes
Relocatable: No
Number of Employees: 10 FT

Financial Information

Asking Price: $1,800,000
Gross Revenue: $5,023,207
Cash Flow: $377,908
FF&E: $100,000
Inventory: $42,082
Real Estate: $700,000
Seller Financing Available: No

Property Information

Facilities:

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.

Growth & expansion opportunities:

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

Competition:

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.

Reason for selling:

Owners are retiring from the business.

Support & Training:

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.

Contact Business Seller

This form may be used only to contact the seller of this specific business listing. Please do not use this form for any other purpose.

Business Listed By:

Hal Feder

Murphy Business Brokers