Business For Sale

Franchise Auto Parts Distributor

Not Disclosed, NJ
Warren County


Asking Price: Annual Revenue:
$275,000 $1,248,000

Wholesale/Distribution: Durable Goods


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RE: Franchise Auto Parts Distributor Broker: Ron Cervelli

Quick Facts

Asking Price: $275,000
Annual Revenue: $1,248,000
Net Profit: Not Disclosed
Cash Flow: $135,000
Total Debt: Not Disclosed
FF&E: $175,000
Real Estate: Not Disclosed
Year Established: 2010
Employees: 5
BBN Listing #: 39193909
Broker Reference #: DIST201

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Business Overview:

Wonderful business opportunity to own this high-volume auto parts franchise distribution company that supplies automobile parts at very competitive prices to its various retail customers. The company has an enormous buying power and can offer very competitive wholesale auto parts. The company services hundreds of automotive type businesses as its primary customers, including parts stores, gas stations, repair shops, body/collision shops, new and used car dealers, junk yards, and radiator repair shops. This distribution company has an average gross yearly income of $1,248,000 and a net yearly income of $135,000. The company has an excellent reputation to deliver brand-new auto parts within two to three hours to local wholesale customers from automotive repair shops, to auto parts stores, etc. Their company is successful due to their philosophy to offer the correct parts with immediate availability. They maintain consistent customer contacts which provide a competitive advantage over competitors who do not have sophisticated system to track the same customers. This distributor offers radiators, hoses, clamps, thermostats, a/c condensers, fan assemblies, side view mirrors, fuel pumps, sending modules, gas tanks, compressors and related a/c parts. New products will continue being developed so the company can have continued growth with vertical expansion with their existing customer base. This industry does not require government licensing approval to purchase or operate, however franchise approval is required. The sale will include full training from the seller and franchiser. This company has five employees who are unaware of the pending sale and fully expected to remain post-closing, and the monthly payroll cost is approximately $9,200. The business has an assignable commercial lease which expires 2026-01-01 plus additional options, with a monthly rent of $3,125, cost per square foot is estimated at $8.90 and rent security of approximately $6,400. The business fixed assets has an estimated value of approximately $175,000 which is based on equipment, franchise and licensing replacement cost. This successful distribution business operation is active 5 ½ days per week, with hours from 8:00 am to 5:00 pm. The business has been valued at $275,000 based on a multiple of the net yearly income including and the value of the specific business assets. The purchaser is responsible for the franchise transfer training fee of $45,000 and inventory. Bank financing has been approved to a qualified buyer with an appropriate down payment, collateral and credit rating. This is a dependable business opportunity and based on the asking price, required down payment and yearly net income, this business expects to supply a consistent and dependable return on investment to the owner operator prior to debt service. Please do not disturb business, this sale is confidential, the employees are Unaware of the pending sale, all viewings are by appointment only and photo does Not represent this business opportunity.

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Property Features and Assets:

The business facility consists of a 4,250 square feet warehouse and has an appropriate design with substantial storage space and various professional offices. The business is in a commercial mall with other active businesses in Northern New Jersey, Warren County, which consists of highly populated communities and numerous auto related repair companies.

Market Competition and Expansion:

The franchise has distance restrictions which will protect this existing business. Also, competitors presently exist in the industry, to the best of our knowledge, we are unaware of any new competitors near to this business. Additionally, the owner has agreed to supply an appropriate non-compete agreement to the purchaser. Although the business has a good marketing plan, and web site, improvement with local advertising can further develop the business yearly gross sales.

Reason for Selling:

Owner is relocating

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 a franchise resale opportunity.

Documents:

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Disclaimer:

The information has been supplied by the Seller. BBN has not verified any of the information provided in this listing. Any agreement or decision by a buyer to pursue a transaction of this listing should be based on further investigation and due diligence. BBN expressly disclaims any and all liability resulting from the sale of this business. For full disclosure please read BBN's full Legal Disclaimer.


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