Very Profitable Vehicle Import Service Business – SALE PENDING

Contact: Steve Kandt
Email: [email protected]@com
Your Reference ID: SK1021718

Description:

The founders/owners/sellers of this highly profitable southeast Michigan service business which represents 25 long-term clients with respect to physically handling and managing the maze of government paperwork required in the annual importing of (impressively) 12,000 used vehicles. Importantly, the company never takes ownership, functioning as an agent to its clients. Not having to take title of the vehicles, of course, minimizes the need for working capital.

The owners, while certainly enjoying their annual $1.0(+) million SDE (sellers’ discretionary earnings – the historical, normalized cash flow available to pay an owner-operator and service debt), have reached retirement age and look forward to relocating (out-state) to their spectacular new home after a training and transition period which meets the successful buyer’s needs. Their pending retirement could be your opportunity.

Processing paperwork and making product modifications to meet U.S. federal requirements is performed by 15 full-time, non-union employees in a very attractive facility (included in the sale). Also included are eight acres of parking to ensure the efficient flow of vehicles coming and going.

The services provided require a very precise process oriented operation.  The company has been pegged as the “gold standard” by the governing authorities, allowing the company to establish faster processing times through the system than its (only) three competitors in the industry.  This market advantage coupled with the company’s sterling reputation for accuracy has potential new customers lined up at its doors.  However, the current owners are content with the business “as is” and continue to turn down opportunities from new customers. To state the obvious, the business is poised for growth for a new owner who wants to add new customers without jeopardizing the high-quality processing system developed by the current owners.

In addition to the impressive cash flow, the company boasts annual revenues the past three years nudging $4.0 million. The business plus real estate (with a $788,000 value established by the sellers’ bank) is listed at $4.39 million, a price which offers the buyer a very favorable 3.6x multiple of SDE. Please note that prospective buyers will need a clean background check to obtain the required broker certification to continue operating this high cash flowing and successful business.

The owners will offer (a) a meaningful seller note for a qualified buyer and (b) ample transition training as they are very committed to the continued success of their company. For more information on this strong cash flowing niche business with significant barriers to entry, please contact Steve Kandt (steve@praxisbb.com).

Location(s): Southeast Michigan

Asking Price: $4,390,000
Cash Flow: $1,200,000
Gross: $3,860,000

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