Excellent Full-Service Auto Repair Shop
584 Five-Star Reviews, Generating $461,675 Average SDE per Year.
Specifications
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Price: $1,015,000 |
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Revenue: $1,730,166 (3-Year Avg.) |
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Cash Flow: $461,675 (3-Year Avg.) |
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Location: South SF Bay Area |
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SEO Strength: Last 12 mo.: 2K New visitors |
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Profit Margin: 26.92% (3-Year Avg.) |
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Employees: 3 Techs, 2 Service Agents |
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Reason for Sale: The Seller is retiring |
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Average Work Order: $687.77 |
| Year Established: | 1977, current ownership since 1985 and in current location since 1992 |
| Services: | A/C, full auto and truck, brakes, diagnostic, diesel service, electrical, fleet, transmission, engine, cooling |
| Equipment: | 6 lifts, Mitchel software RO on 5 computers, parts washing machine, in ground smog dyno, tire balancing machine, overhead exhaust system, and much more. |
| Clients: | 95% retail and 5% fleet. |
| Lease: | 5900 sq ft assumable lease at $11,524 per month NNN, average 7.6% per month rent cost, 2 years plus 5-year option remain. |
| Personnel: | 3 full time technicians and 2 full time service advisors, owner is full time. |
This presented listing is for an established repair shop that is well known for it’s excellence in service and quality of work. With 6 lifts and 3 full time ASE-Certified technicians they average 10 jobs a day. This year is on pace to break $2 million in sales.
The business’ reputation and commitment to the highest standard of service keeps both long-time and new customers coming back for a one-of-a-kind experience. All technicians are ASE-Certified and receive on-going training and education to keep up with the changes in the auto industry.
The strong SEO of the website drives 5 to 6 new customers per day on average to the business with roughly half of them making appointments for service. The monthly cost of SEO maintenance is covered roughly by the income of a singular average repair ticket.
This is an incredible opportunity for a buyer who is looking to expand their current automotive-services business, or an industry professional who is ready to put their skillsets to work for themselves by acquiring one of the top-rated auto-shops in the South Bay and it’s great cash flow.
Value Proposition
- Continuous service since 1977
- 584 five star reviews
- Uses Digital Workflow for efficiency
- Easy to find location with great accessibility
- Exceptionally clean shop
- Considered an essential business
- AAA Approved, Diamond Certified & Star Certified
- Buyer replace Seller, PT bookkeeper needed
- Average work order for 2020: $687.77
- Average jobs per day: 10
Revenue Breakdown
Financial Highlights
- Listing Price: $1,015,000 including inventory
- 2020 Cashflow (SDE): $375,069
- 2020 Sales $1,746,370
- 2021 sales on track to pass $2 Million
- Seller + wife’s W-2 & K-1 = $274,294 on 2020 taxes
- Recommended Working Capital: $50,000
- Inventory Estimated Monthly Cost Average: $5000
- PPP loan forgiven
- No EILD Loan
Cashflow Analysis
Asking Price
The asking price is determined using a cash flow and asset 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. The asset methodology takes into account what it could cost to open a similar business in equipment and square feet. A multi-factor multiplier is applied to the cash flow based on the condition of the business and the asset value is added to that result.
For this business, a three-year average cash flow is applied, making the business price more favorable to a buyer. The multiplier applied in this case is 2.2x, a highly desirable price to value ratio.
The SDE value takes into account the time to build up goodwill and customer reputation & base. To build out a similar space with like equipment from scratch, it could cost upwards of $1 million or more for the assets alone.
Funding Example
Purchase Price: $1,015,000
20% Buyer Down Payment
$203,000
Buyer’s Equity
80% Bank Loan
$812,000
10-Yearterm at a rate of 5.50% = Monthly loan payment of $8,812
- Cash Flow (SDE in 2020): $375,609
- Annual Payment to Bank: $105.744
- Net Profit (After Expenses and loan payment): $269,865
* 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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