Auto Recycling Business – No Banking Needed

NOVEMBER 12, 2024

We are pleased to offer an attractive auto and truck parts recycling business which has been family owned and operated by three generations over an 80 year period. The current owner is slowing down and without a fourth generation family member to succeed him, he looks forward to transitioning the business to its first non-family member.

The business is located on a ten acre parcel off a major State Highway in Western Michigan. The parcel includes a warehouse, a processing center where purchased cars and trucks are disassembled and stripped down to parts, and an office. Seven skilled, long term, loyal, non-union employees nicely manage the business. One of the employees functions as the general manager which can offer the successful buyer of this business the opportunity to be an absentee owner. The key employee is aware of this listing, and he looks forward to continuing to manage the business post-close for the new owners.

With vehicles on-hand and countless parts warehoused and categorized on the company’s proprietary software programs, this very customer-friendly business outshines its competitors by offering parts virtually instantly. In 2023 the company found itself in need of more space which resulted in an early 2024 relocation (to a site 25 miles away). The relocation caused a short term disruption in both sales and cash flow which were ironed out on a timely basis. Now, (4th quarter 2024) the business is happily ensconced in it new digs as it looks forward to an outstanding 2025.

For the three year period, 2023, 2024, and 2025 (forecasted), the business expects average annual revenues of $1.75 million. For the same three year period, expectations of average annual EBITDA exceed $150,000. And how about this series of buyer friendly price and terms without banking:

• $400,000 of inventory included

• $90,000 of physical assets and software included

• Goodwill: 1.9x EBITDA ($150,000 x 1.9x) = $285,000

• Total Listing Price = $775,000

• Buyer Cash at Close = $195,000 (25% of listing price)

• Seller Note #1: $280,000 – 5.0%; 60 month amortization after 6 month standby (@$5395)

• Seller Note #2: $300,000 – 5.0%; 60 month amortization after 66 month standby (@$7188)

As part of the purchase price, the seller will include generous transition training and post-close consulting. To learn more about this perfect business for any buyer who wants a niche, cash flowing, auto-related business with significant barriers to entry, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com or 616-450-0707).

Asking: $775,000
Cash flow: $150,000
Gross: $1,750,000
Reference ID MG1122
Location(s): West Michigan
Categories: Automotive aftermarket

Contact information

Michael Greengard
mgreengard@praxisbusinessbrokers.com
616-450-0707