MergerPlace

Western North Carolina -

North Carolina


  • Asking Price: $825,000
  • Gross Income: $6,781,004
  • Cash Flow: $168,650
  • Real Estate: Not Disclosed
  • Inventory: $125,000
  • FF&E: $250,000
  • Listing ID: #209101
  • Established: 1977
  • Employees: 12 FT

Business Description

Exceptional dealership opportunity for those wanting the BEST of BOTH WORLDS ... an established, profitable and successful new Ford Motor Company franchise AND the opportunity to live in a beautiful, safe and relaxing part of the country.

Surround yourself in incredible mountain views and take full advantage of abundant outdoor living opportunities -- fishing, hiking, camping -- all the while marketing, selling and representing one of the strongest, most successful, iconic and longest running automotive franchises in the marketplace -- Ford branded cars, utilities and trucks. The powerful Ford brand includes a full line-up of stylish cars, purposeful sport utilities and hard working pick-up trucks, including F-Series, the best selling nameplate in the USA for 40 years running.

Located in rugged, mountainous Western North Carolina, this community is perfectly suited for the Ford-branded products and especially their world-class pick-up trucks. The Ford locality market share registrations ran at a healthy 23.2% over the last 12 months.

During 2017, the dealership generated over $6 million in top line revenue retailing 56 new vehicles and 140 used vehicles. Parts, Service and Body Shop sales were $611K, $286K, AND $124K respectively. Average profit during 2015-18 was $170K/annually.

FINANCING AVAILABLE! This business has been lender pre-qualified for up to 80% financing to qualified candidates including all closings costs and working capital. See term sheet for details.


Business Details

Primary Business Category: Services - Other Services
Location: North Carolina

Company Information

Year Established: 1977
Home Based: No
Franchise: Yes
Relocatable: No
Number of Employees: 12 FT

Financial Information

Asking Price: $825,000
Gross Revenue: $6,781,004
Cash Flow: $168,650
FF&E: $250,000
Inventory: $125,000
Seller Financing Available: Yes

Property Information

Facilities:

The Ford facility is located in the heart of the community in close proximity to both downtown businesses and a major NC State highway. The 10,090 square foot facility is situated on just over 2 acres of land and includes a service department with 6 work bays and 1 clean-up stall, parts department, business office and 2 salesperson write-up/closing offices and 1 executive office. The building was constructed in 1977 and is available for purchase from the seller for $1,200,000. Alternatively, the seller will entertain a long-term lease contract with renewal options for $10,000/month on a triple net lease.

Growth & expansion opportunities:

Retail sales expectancy is running at 48.9%, or about 70 new units below guide, which indicates tremendous upside potential for incremental sales and profits in the new vehicle department. There is also excellent upside in fixed operations with service absorption running at 52.4% versus Group at 64.8%, Parts Sales per UIO at $351 (vs Group at $455), Service Sales per UIO at $164 (vs Group at $281). Body Shop per UIO at $71 exceeds Group at $48. While the dealership has demonstrated consistent, stable, and sustained profitability for a number of years, there is excellent growth potential when comparing present performance to group average performance levels. Major opportunities include: 1. Hiring and training additional sales personnel 2. Implementation of a more aggressive marketing plan, including internet 3. Hiring additional parts and service personnel 4. Finance and Insurance revenue opportunities 5. Used vehicle gross running only 61% of group average

Competition:

This market has a low competitive automotive density with this business being the only local new vehicle franchise. There are several local used vehicle dealers as well as a NAPA Parts and Advance Auto Parts Store. The closest new vehicle dealer is 20 miles away and the second closest is 35 miles away. The local new vehicle industry runs at around 1,000 new units annually, which affords a new Ford vehicle sales expectancy of 137 units, or a 15.4% market share. Actual Ford registrations in the market for the last 12 months were 205 units (a 23.1% market share), indicating a strong bias for Ford product especially in the truck category (71% of total).

Reason for selling:

Owner is retiring from the business.

Support & Training:

Will train for 4 weeks @ no cost Products and services include the sale of new cars, new trucks, 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 city, county and state jurisdictions. The manufacturer offers a variety of training and certification programs for both vehicle and fixed operations disciplines. Ford franchise approval will be required for this business transition. Candidate approval criteria is likely to focus on prospect's reputation/character, previous business experience (prior automotive a large plus), financial investment capacity and customer satisfaction record/mindset.

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Business Listed By:

Hal Feder

Murphy Business Brokers