Auto Repair And Inspection Shop For Sale

Business Overview:

The current owner purchased the business in the last decade after a long career in the automotive industry. The current owner has continued to grow the business by focusing on paid marketing and developing recurring business through commercial relationships. In addition, the current owner has been able to leverage the shop’s tremendous reputation in the area to hire several experienced technicians who are up to the task of under promising and over delivering to customers.

The shop is currently STAR Test-and-Repair certified and has a license to perform California’s rigorous emissions testing protocols. Included in the sale is the license and all equipment used to perform emissions testing, including a smog check machine and a dynamometer. The shop is also highly equipped. It has 7 lifts, 9 bays, and the latest diagnostic equipment. By investing in the latest technology and equipment, the shop remains the largest and most reputable shop in the area.

The owners focus on providing high-quality, high-margin services to customers extends beyond the shop’s equipment. The master technician at the shop has been with the shop for 11 years and is ready to take on additional responsibilities under new ownership. The master technician, along with the two mechanics are experienced and keep the shop operating smoothly.

The shop has now grown into a well oiled machine itself. It’s grossed an average of over $900,000 in annual revenue over the last four, with solid cash flow to the owner. It has a strong customer base and a personalized approach to customer service with a team of 4 employees in addition to the owner. The business is pre-qualified for an SBA 7(a) loan.

The broker of record for this transaction is Jon Nesbitt, CA License #1002237

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Property Features and Assets:

The facility includes 4,000 square feet of shop space with 7 lifts and 9 bays. The shop is well equipped with the latest diagnostic equipment and inspection equipment, which is included in the sale.

Market Competition and Expansion:

There are several franchises in the same area as the shop, however the shop's nearly 40-year presence in the area has allowed it to amass a loyal customer base who consistently drive new business to the shop via referrals. The one threat area is universal with auto shops: reputation makes or breaks the business. The new owner will need to be very proactive in maintaining the standards set by the current owner as it relates to customer service and attention to detail. Being relaxed on these fronts would set up the business for poor online reviews and make continuing or surpassing the current owner's success a difficult task. Customers choose the shop for its quality and customer service. The firm has a well-to-do client base that understands the value of quality work, which makes the unit economics strong and avoids having to haggle over price. This is based upon the strong trust built up by the business and allows the firm to compete against dealership service. There are a number of opportunities to grow the business. First, a buyer could invest in outside sales to drive more commercial fleet work to the business. Second, there are a number of marketing channels like paid search and CRM marketing that are not being used at all. Third, the facility has ample room to expand both in terms of enclosing the carport for additional work space as well as hiring an additional technician. Lastly, there is opportunity to grow after-market product sales such as car alarms, running boards, etc.

Reason for Selling:

Retiring

Additional Details:

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