Auto Body Shop for Wheels – Profitable Auto Wheel

Not Disclosed, CA
Santa Clara County

San Francisco Metro Area

Asking Price: Annual Revenue:
$599,000 $1,200,000

Services: Non-classifiable

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RE: Auto Body Shop for Wheels – Profitable Auto Wheel Broker: Tim Cunha
License #: 01919755

Quick Facts

Asking Price: $599,000
Annual Revenue: $1,200,000
Net Profit: $300,000
Cash Flow: Not Disclosed
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 1989
Employees: Not Disclosed
BBN Listing #: 329839224
Broker Reference #: 6003

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Business Overview:

This is a specialized “auto body shop for wheels” … repairs, refurbishing, painting, and polishing. Serving the San Jose Metro/Bay Area for over 30 years. All work is done in-house, using a full array of wheel straightening equipment, including a state-of-the-art wheel press and a hub aligner that brings wheels back to “near-perfect” trueness.
They reconstruct wheels to new condition and structural integrity. First, the wheel is straightened as much as possible, then they weld new aluminum or steel to repair or replace broken off pieces of wheels that were lost in especially bad impacts. Once the new material is machined to meet the original specs, they then smooth it to match the wheels’ original surface. The customer then has the option of original paint, custom paint, or polishing it to a mirror like shine that even the most critical eye would approve of.
Customers include individual vehicle owners, corporate vehicle fleets, and commercial auto body shops throughout the greater San Francisco Bay Metro Area.
This is an ideal business that capitalizes on the trend to repair rather than replace. Repairing wheels usually costs less than buying new, and often the damaged wheel is no longer available from the manufacturer. With a “wholesale” as well as retail customer base, it provides economic stability and sustainability. The potential new owner could be an owner-operator, a semi-absentee investor, or an existing auto body shop that wants to expand its market.
The business is in a leased facility with office, work, and storage space, with a monthly rental of approximately $7,000 per month. Equipment includes (but not limited to) automatic polishing machines, polishing lathes, wheel presses, CNC machines, paint/spray/powder booths, paint & powder guns, lifts, wheel balancer, blast cabinet, compressors, and 5 vehicles for pickup and delivery. The itemized cost to acquire and install replacements for all the furniture, fixtures, and equipment (“FF&E”) with similar type, age, and condition (“used, not new”) is $400,000.
Sales are approximately $1,200,000 annually. Gross revenues in the first three months of 2019 (Q1) are over $300,000, with an annual SDE trending to be $300,000, perhaps more. 2018 financials are still being completed and 2018 SDE being calculated; complete financial history will be available to serious prospective buyers upon signing an NDA and meeting with the broker and seller.

The Transaction: The asking price for the entire business is approximately 50% of annual gross revenue / 2X SDE — $599,900. This includes website, phone number, name, customer database, manufacturer relations, tools, equipment, instruments, and a reasonable period of training and management transfer consultation from the seller (length of time to be negotiated). It would not include the sub-S corporate entity, cash-on-hand, rental deposits, accounts receivable, or accounts payable. Parts inventory cost is negotiable.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made NO independent verification of the data contained herein. The Broker represents the Seller and does NOT represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.

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Additional Details:

  • The property is owned.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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