Full-service auto body and custom painting business in Southwest Virginia. Established in 2005, the Company is the largest and best-equipped shop in the area. It has built a solid reputation with drivers and insurance companies -- with approximately 90% of their business coming directly from insurance companies. Great location near interstate provides easy access to surrounding areas and the go to shop for tow trucks responding to local accidents.
Lender pre-approved for qualified buyer with 10% down. Prime + 2%. 10 year term for business only, 14 year term for business and real estate. The seller's discretionary earnings includes a $31,000 charge for rent. The cash flow available to a buyer of the business and the Real Estate would be $378,814. Seller will finance up to 10% depending on terms and structure of overall offer and buyer qualifications.
The Company saw a slowdown in 2020 as fewer drivers on the road during shutdowns and stay at home guidance resulted in few drivers running into each other. They are starting to see business pick back up in early 2021 and already have a several week backlog. The Company anticipates that once the COVID vaccine is widely rolled out and schools and businesses reopen that drivers will return to the roads and start running into each other again.
Under the CARES Act as revised by the Stimulus Act, if you use an SBA 7(a) guaranteed loan, this company qualifies for 6-months of principal and interest paid by the SBA to the lender on your behalf (up to $9,000 per month). The loan payments paid by the SBA are not taxable. The SBA is also waiving its loan guarantee fee (approximately $27,000 for both the business and land loan). The SBA guaranteed loan must be approved by the SBA before 9/30/2021, or earlier if funds run out.
Located on 2.5 acres, the business uses a 4,800 square foot, stand alone building with a 1,200 foot addition that houses a paint booth and enclosed wash/prep area. They have all equipment needed to perform all types of collision repair, restoration, and re-painting. The facility is located near an interstate with easy access. The Real Estate is available for sale for $310,000 or long-term NNN lease at $31,000 per year with 2% escalators.
New buyer can continue to grow the company through increased and broader advertising, adding additional insurance agencies, fleet accounts and/or becoming a Virginia DOT provider.
Very limited competition. The nearest comparably equipped shop is about 30 miles away.
Owners have moved out of state.
Will train for 4 weeks @ no cost. The Company provides full service collision repair, scratch and dent repair, computerized frame straightening and structural body part repairs. No licenses are required.