Full-Service Auto Repair Shop Monterey County – $238,765 Earning
38 year reputation with 33% profit margin.
Specifications
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Price: $525,000 |
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Revenue: $746,408 (4 Year Avg.) |
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Cash Flow: $238,765 (4 Year Avg.) |
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Location: Coastal Monterey County |
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Service Area: Coastal Monterey County |
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Profit Margin: 33% |
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Employees: 2 Full Time Employees |
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Reason for Sale: The Sellers are Retiring |
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Goodwill: 38 Yr Reputation Multiple 5 Star Reviews |
| Year Established: | 1989 |
| Services: | Full-Service Auto Repair – Specializing in Mercedes Benz |
| Equipment: | List Will Be Provided – Value $125,000 |
| Facility: | 2,400 Square Feet Shop |
| Lease: | Assignable With Options $6,000 Plus Monthly |
| Personnel: | 2 Full Time Experienced Technicians |
Available for sale is a full-service family-owned auto repair shop that has been serving the automotive needs of its neighborhood and beyond for 38 years.
Although capable of working on all makes and models of vehicles, this shop has developed a reputation as the “Go To” place to trust for your Mercedes Benz service needs.
Growth potential is high, especially if the new owner expanded into working on the other popular brands and hiring additional technicians.
Value Proposition
- 38 Years of Established Reputation
- Multiple 5 Star Reviews
- 32% Profit Margin on $238,765 4-Year Average SDE
- Priced Below Market for Quick Sale – Retirement
- 148% Return on 20% Cash Down in the First Year
- 4 Year Average Cashflow (SDE) $238,765
- Experienced Team of Technicians
- Great Location With Easy Access
Revenue Breakdown
- Fleet customers are customers of 5-30 years without written contract.
Financial Highlights
- Listing Price $ 525,000 including $ 25K Inventory
- Furniture, Fixtures, and Equipment Value $125,000
- Strong Growth Potential
- 2021 performance is recovering from COVID dip
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 four-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 2.22x, below the market in favor of the buyer.
Funding Example
Purchase Price: $525,000
20% Buyer Down Payment
$105,000
Buyer’s Equity
80% Bank Loan
$420,000
10-Yearterm at a rate of 5.50% = Monthly loan payment of $4,558.10
- 4-Year Average Cash Flow SDE $238,765
- Annual Payment to Bank: $54,696
- Net Profit (After Expenses and loan payment): $184,069
* 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.