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Full-Service Auto Repair Shop Near SFO – $483,000 Earning

Consistent Average $1.7M in Sales and 32% Profit Margin in 2020

Specifications

Price: $850,000

Revenue: $1,673,310 (3yr Avg)

Cash Flow: $459,122 (3yr Avg)

Location: Near SFO Airport

Service Area: SF Bay Area

Profit Margin: 38%

Employees: 10FT (2 Owners)

Reason for Sale: Retirement

Goodwill: 30yr Rep, 4.8 Stars

Year Established: 1989
Services: Full-Service Auto & Truck Repair – Including foreign and domestic brands. No Tire Sales
Equipment: 6 lifts (1 Heavy Duty), Dyno, Smog Machine (Leased), Brake Lathes, Welding Machines
Truck Service: Up to one ton
Clients: 80% Retail; 20% Fleet
Lease: 7000 sq. ft. Shop, Lease Ending 1/1/2024, Mo. Lease $6550
Personnel: 7 FT Technicians, 2 FT Owner and 1 Working Family Member
Software: Maxxtraxx; Mitchell 1; Alldata

This acquisition opportunity is for a well-established, highly reputable 30-year auto repair shop located about 5 minutes from SFO Airport. The company offers a full range of auto maintenance/repair service, except for tire work. The two owners are actively involved in the daily operation, supported by a paid family member who runs the administrative duties and bookkeeping. The shop comes with fully equipped machinery and 7 full-time technicians.

A buyer for this business should be a skilled customer service operator and be ready to hire an experienced technician foreman or onsite manager to continue the success. Buyer needs to obtain smog technician license.

The retiring owners will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business.

Value Proposition

  • 30 years of Established Reputation
  • Exceptional Customer Reviews of 4.8 stars
  • > 25% Profit Margin, $483,000 Earnings
  • Priced Below Market for Quick Sale – Retirement
  • 232% Return on 20% Cash Down in the First Year
  • 2021 On Track to Beat 2019 (2020: COVID Dip)
  • Experienced Team of Technicians
  • Buyer to Replace Retiring Seller- Need Exp. Mgr

Revenue Breakdown

  • Fleet customers are customers of 5-30 years without written contract.

Financial Highlights

  • List Price: $850,000 + Inventory
  • 2020 Cashflow (SDE): $483,561
  • 2019 Sales $1,808,447
  • 15% Sales Dip in 2020, due to COVID
  • 2021 sales trending back to 2019 level
  • Working Capital (June 2021): $218K
  • Inventory (June 2021): $38K

Cashflow Analysis

Asking Price

The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.

For this business, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 1.85x, below the market in favor of the buyer.

Funding Example

Purchase Price: $850,000

20% Buyer Down Payment

$170,000

Buyer’s Equity

80% Bank Loan

$680,000

10-Yearterm at a rate of 5.50% = Monthly loan payment of $7,380

  • Cash Flow (SDE in 2020): $483,561
  • Annual Payment to Bank: $88,557
  • Net Profit (After Expenses and loan payment): $395,004

* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.

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