Field Notes: A Golden Opportunity in Automotive Services?

Over 60 Years in Business with Impressive Financials

What do we have here? A golden goose in the realm of automotive services based out of sunny Florida? It looks like a titan in the market, catering to a kaleidoscope of customers, and boasting financials worthy of a deeper look. But, and this has been par for the course when sifting through listings, details on the actual business are few and far between. The numbers add up though. With an asking price just over 2x SDE, the adventurous ETA might want to bite the bullet and ‘request more information’.

Here’s what looks good based on the limited information in the listing:

Business Overview

• Established for over 60 years, this company reportedly has a significant presence in the regional market as a leader in providing services to the automotive service industry.
• The business caters to both the private sector, including retail auto dealerships and private auto repair and tire stores, and government fleet service and repair facilities.
• The company is a master stocking dealer for many national auto equipment trade brands and the company offers a wide range of products and services, to include auto lifts, tire equipment, shop and lubrication equipment, air compressor products, and exhaust products.

Financials

• Asking Price: $3,900,000.
• The business reportedly shows total sales of $4,493,297 with seller’s discretionary earnings of $1,840,877.
• The sale includes inventory valued at $150,000 and Furniture, Fixtures, and Equipment (FF&E) valued at $324,000.

Operational Insights

• The company reportedly operates with a team of 13 employees and a seasoned management team.
• Facilities: The company operates from a strategically located warehouse/office facility of over 12,000 SF, which the seller owns and is willing to lease to the buyer.

Transition and Growth Potential

• The current owner’s willingness to remain in a commissioned sales capacity post-sale can ensure a smooth transition and continuity of client relationships.
• Like with most businesses, there’s potential for growth by expanding services, exploring new markets, or leveraging the company’s strong industry relationships.

My first two concerns are why is the owner selling if they’ve volunteered to stay on as a commissioned sales rep, and I’d want to see all the fine print on the facility lease agreement.

About: Silverwave Field Notes combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed. The business highlighted above is represented by Transworld Business Advisors.