Super Profitable Auto Body Shop Opportunity

Not Disclosed, MI

West Michigan


Asking Price: Annual Revenue:
$425,000 $600,000

Automotive & Boats: Auto & Truck Repair & Service


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RE: Super Profitable Auto Body Shop Opportunity Broker: Mike Greengard

Quick Facts

Asking Price: $425,000
Annual Revenue: $600,000
Net Profit: Not Disclosed
Cash Flow: $230,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 1945
Employees: 2
BBN Listing #: 994931216
Broker Reference #: MG1100621

Email or Print Listing

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Business Overview:

It has been a wonderful 35 year run for the owner-operator of this small, very profitable and well respected body shop in a very desirable community in West Michigan, located adjacent to the “Big Lake.” The company has been in continuous operation for 75 years which is a real tribute to the quality and service given to local customers from its small town and the many surrounding communities. Now at retirement age, the seller looks forward to transitioning the business to the next owner-operator.

With two employees (one in the office and one in the shop) along with the full-time owner, the business generates more than $600,000 of annual revenues year after year, including 2020, the Covid-19 year. The full time shop employee is well compensated and has company provided health insurance.

Even more impressive than the company’s strong and consistent revenue stream, the business generates SDE (seller’s discretionary earnings – the historical, normalized, cash flow available to pay an owner-operator and service debt) of $230,000 each and every year. The business operates out of an attractive, free standing 4600 square foot building owned by the seller and leased to the business for $1,250 per month, which is a very modest 2.5% of revenues. The seller intends to continue the lease for the buyer of the business.

With decades of satisfied customers representing thousands and thousands of parties, the future of the business looks bright. As one would expect, the business is spotless and offers the buyer a full complement of industry appropriate lifts, hoists, tools, spray booths and the like – all of which are included in the offering price.

The seller envisions an asset sale in which he retains cash and receivables while retiring all liabilities. The buyer gets all of the fixed assets, supplies, $5,000 of inventory along with the goodwill (which includes an impressive website) of this venerable business. With a combination of a $425,000 listing price (an attractive 1.85x multiple of SDE) and a $40,000 seller note for a qualified buyer, this transaction should be embraced by SBA banks.

The deal looks great too: with $40,000 buyer cash, $40,000 seller note, and a $345,000 SBA term loan, annual projected debt service (seller note + SBA term loan) would be $50,000, leaving a whopping $180,000 of post debt service free cash flow for the buyer to pay himself. Pretty good for a $40,000 down payment!

This small, attractive, highly profitable business would be perfect for someone skilled and experienced in collision repair who would welcome the opportunity to own and flourish in his own business while enjoying the terrific West Michigan lakeshore environment. The seller will be available for an ample transition period to help insure the success of the new owner. To learn more about this excellent business opportunity, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com or 616-450-0707).

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Property Features and Assets:

Attractive free standing 4,600 square foot building owned by the seller.

Reason for Selling:

Retirement

Additional Details:

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

Relevant Links:

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