MergerPlace

Well-Established, Commercial and Retail

North Carolina


  • Asking Price: $997,000
  • Gross Income: $1,620,711
  • Cash Flow: $360,007
  • Real Estate: Not Disclosed
  • Inventory: $75,000
  • FF&E: $30,000
  • Listing ID: #215798
  • Established: 2007
  • Employees: 5 T/ 0 PT

Business Description

A well-established, consistent million dollar plus automobile and truck commercial service center in Eastern North Carolina. The Company offers tire sales, roadside assistance, fleet maintenance, commercial services, oil changes, tune-ups, engine and transmission analysis and repair, inspections, battery replacement and many more services. This turnkey company is an excellent opportunity for a strategic buyer to step into a consistent profitable operation.


Business Details

Primary Business Category: Retail Trade - Motor Vehicle & Parts
Location: North Carolina

Company Information

Year Established: 2007
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 5 T/ 0 PT

Financial Information

Asking Price: $997,000
Gross Revenue: $1,620,711
Cash Flow: $360,007
FF&E: $30,000
Inventory: $75,000
Seller Financing Available: No

Property Information

Facilities:

Founded in the early 1980s, the Company operates from a 1.8 acre complex, employing 5 full-time employees. The business has a long history of successful/profitable operations in this location. The owner has developed a skilled staff that is experienced and loyal. The location of the business is conducive to the success of the company being located in the vicinity of major economic hubs of New Bern, Greenville, Wilson and Goldsboro. The facility consists of 10 bays, 9 of which are fully equipped. The 7,020 square foot facility sits on 1.8 acres, leaving plenty of room for customer parking. The major equipment Includes 9 lifts, an alignment machine, and an exhaust lift. The property may be purchased in conjunction with the business for $275,000. If the Buyer is seeking bank funding, the addition of the real estate will have a positive impact on the debt service calculation. Note: the combined Seller Discretionary Earnings for the real estate holder is $387,507 (the SDE for valuation purposes plus the $27,500 in rent that is being charged to the P&L for valuation purposes).

Growth & expansion opportunities:

Success in the commercial and retail tire and services is driven by speed to service, quality inventory, and having a good reputation. The company excels in each of these areas and is well positioned for continued future growth and success. Growing Demand: Depends on miles driven and the number of cars on the road. The increased complexity of vehicles, which makes it more difficult for vehicle owners to perform do-it-yourself repairs, is also driving demand. Revenue (in current dollars) for US automotive repair, maintenance and services is forecast to grow at an annual compounded rate of 3% between 2015 and 2019.

Competition:

Customer markets are shared between commercial (39%) as well as retail customers. Management is proud of the many loyal customer relationships built over the Company’s history and believes customer relationships will successfully transition to new owners. Competitive Landscape: Success in the commercial tire and services is driven by speed to service, quality inventory and having a good reputation. The company excels in each of these areas and is well positioned for continued future growth and success. Market Position: The vertical very fragmented market, growth opportunities exist through market consolidation. Customer markets are shared between commercial (39%) as well as retail customers. Management is proud of the many loyal customer relationships built over the Company’s history and believes customer relationships will successfully transition to new owners. Competitive Landscape: Success in the commercial tire and services is driven by speed to service, quality inventory and having a good reputation. The company excels in each of these areas and is well positioned for continued future growth and success. Market Position: The vertical very fragmented market, growth opportunities exist through market consolidation.

Reason for selling:

The principal is pleased with the success the Company has achieved and recognizes that it is well positioned for continued growth; however, new ownership with greater capital and human resources may be better suited to take the Company to the next level. Being in the tire business for almost 40 years, the principal is retiring.

Support & Training:

Will train for 4 weeks @ no cost. The business has a long history of successful/profitable operations. The owner has developed a skilled staff that is experienced and loyal. Superior name and reputation: The Company has a long-standing (38 year) reputation for its focus on quality products, offering reliable expertise, and providing superior customer support. Strong customer relationships: The Company has strong ties to clients due to its reputation for timely and excellent customer service. This commitment is represented in the strong retention rate of accounts and 90% repeat business. Diversified customer base: The Commercial Customer base is diverse, as no one commercial customer represents more than 15 percentage points of revenues in a given year. Revenue Mix: Commercial services represents approximately 39% of the company’s revenue. Management will remain through transition - To facilitate a successful and orderly transition, the current owner is willing to remain with the Company during a transition period. Competitive Stronghold – The Company has very high standards in their competitive market. The Company offers top notch service and quality and sourcing products from well-established manufacturers. Quick service, follow-up, and turnaround is the driving factor to the Company's successful customer loyalty.

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Business Listed By:

Tully Ryan

Murphy Business Brokers