Successful Northern Michigan Automotive Aftermarket Business

Contact: Tim Carter
Phone: 616-560-1080
Email: [email protected]
Your Reference ID: TC1061217

Description:

After 18 of ownership retirement is fast approaching for the current operator of this attractive and profitable northern Michigan automotive aftermarket business. He has decided that now is the time for him to transition the business to only its third owner in the 30 year history of this successful business, a fixture in this desirable geographic region. It comes as no surprise that the business has lots of favorable reviews on social media. 

The business operates out of 7,500 square foot facility which contains multiple work stations, a showroom, a customer waiting area and office space. The real estate is owned separately by the seller and must be purchased with the business. The business pays $55,000 annually in rent for the building which is being offered for purchase at $625,000. 

The business has six full-time employees including a full time manager. In 2016 the SDE for the business (seller discretionary earnings – the historic cash flow available to pay an owner-operator and service debt) was $76,000. Revenues are consistently around $550,000 for the past three years. 

The business is being offered for $229,000. That includes fixed assets (value in place of $50,000), and ample inventory (projected at $20,000) As a result the price for the goodwill portion of the business is only $159,000 which is less than 2.1x SDE. In addition, the seller will carry a meaningful seller note for an enthusiastic, but undercapitalized buyer. This is a wonderful opportunity for a new owner to hit the ground running with an attractive income while inheriting excellent growth potential given the outstanding location of the business and the outstanding growth demographics for the region. 

For more information on how you can instantly become a player in the fun and lucrative automotive aftermarket business and to request information on this well-established business please contact tim@praxisbb.com or (616) 560-1080

Location(s): Northern Michigan

Asking Price: $229,000
Cash Flow: $76,000
Gross: $550,000
Inventory: $20,000

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