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PRICE LOWERED AGAIN TO 221K! Denver Auto, Light Truck and RV Repair Business, Awesome Location

AutomotiveFor Sale in CO

Financial & Assets Details

$1,040,000
$220,000
$40,000
$40,000
$1,700,000
5868+/-

About the Business

1965
5
Yes

Business Description

Auto, Light Truck, and RV Repair Close to Center of Denver

The seller is 77 years old and has to sell therefore, he has agreed to reduce the purchase price to his bottom bottom line pro actively. I had this listed at $500K for the business which was a reasonable 2 ¼ times the earnings and $1.75M for the building which is what we believe the appraised value will be. He needs out and has reduced the business from $500K to $221K which is ONLY 1X the EARNINGS and has reduced the building to $1.7M which should be below the appraised value. This is a $329K reduction in price. He has a 2 year old appraisal that came in at $1.6M and this is a growing area now that the light rail station is open with a lot of new projects within blocks of them. This also will have one of the owners staying as an employee which is very valuable to the new owner.

Since 1965, a transmission repair company that has grown into a very steady 1M in revenue per year with 210K or more in earnings. 2019’s revenues were 1.04M with earnings of 221K. 2018’s revenues were 1.015M with earnings of 211K. 2017’s revenues were 1.015M with earnings of 216K. The business is trending exactly the same in 2020. This is priced at only 1 times the earnings plus inventory estimated to be 40K.

There are 2 owners. The original owner is retirement age and does very little every week for the business. The newer owner helps with the front of the shop taking in and checking out the vehicles among other things. The newer owner will stay if the new owner wants him to. They get a lot of referrals from previous customers, other repair shops, and dealerships. The business will not change after the sale based on how they get their business. The buyer will also get 40K in Equipment, Furniture, one vehicle, etc.

This company has a 4.8 Star Rating on Google with 93 reviews which is excellent plus an A+ rated by the BBB.

The sales price is 221K plus inventory which is estimated to be 40K. A bank will only require 10% to 20% matching from a qualified buyer meaning a buyer may qualify with no more than 100K in liquidity.

Details:

They repair and perform regular maintenance on all types of automobiles, light trucks, and RV’s. They will also do various other repairs and maintenance if requested and they feel comfortable they can do a professional job. There are 5 employees: 1 Front of house who handles most of the phone calls and walk ins, 1 who helps with front of the house, admin, and checks the cars after they are repaired, 2 rebuilders, and one remove and replace. All are mechanics whom have been well trained. If a new owner wants to grow and add employees, they have some advantages: Location in the slightly north west of the middle of Denver location with plenty of parking, steady stream of revenues(not seasonal) makes them feel more secure, great wages, 4 different sources of help including books, vendors training, other employees, and the internet if needed. One internet site shows how a specific problem has been successfully repaired multiple times in the past. The current employees have all been loyal to the company with 2 of them being there over 10 years. The Sellers can train a new buyer with little or no experience but the buyer must have the drive and aptitude or experience. He believes it could take as little as 3 to 4 months for a buyer with no experience. They also carry a large inventory of used parts and new parts.

This shop has processes and procedures that are very thorough and assures that the vehicles are repaired correctly the first time. This is one of the reasons that other repair shops and dealerships refer their customers to them. The average repair is only 2 to 3 days. This business has many long-standing relationships with other repair shops all over Denver. It took years to establish these highly-profitable relationships. This is very valuable to the new owner going forward and means that the new owner will step into a steady stream of work at the closing. The new owner believes there will be no issues in the transition as long as the quality of work that they do does not change.

They have an extremely clean and professional shop. He estimates that his FF & E including everything except leasehold improvements are 40K but based on my experience it looks like a lot more than that to me.

The business is 54 years old and has a solid name and the finest reputation for fair dealings. The seller will agree to full Reps and Warrantees to a solid legal and business standing, no “ghosts in the closet”. They have a great record for safety (OSHA) and no legal battles. They have never left a job incomplete. If the client has a problem with their work, they fix it. The seller’s willingness to carry a portion of the sales price speaks volumes about his confidence in the short and long term performance of the business and the cash flow and revenue expectations.

Awesome Location: The property was re-landscaped and the shop rebuilt in 2002. It has a custom built, 5,856 square foot building with a lot of special features. The building and property has been lowered to 1.7M from 1.75M. The owner want to sell the building as part of the purchase of the business or a separate transaction on the same day. They had an appraisal done in August 2018 which indicated a value of 1.6M and their area has seen a lot of new investment since then especially around them. Great floor plan which is custom and very functional and efficient. Security cameras and plenty of parking. Can accommodate more employees and future growth. They have no underground tanks, 6 lifts including 1 18,000 pound lift, 1 12,000 pound lift, and 4 9,000 pound lifts. They also have a large scissor lift that pulls inventory down from shelves and from the 2nd to 1st floor, various jacks, large compressors, numerous tools, small equipment, etc. There are two 12 foot garage doors and four 10 foot, swamp cooling, radiant heating, large employee area with lockers, shower, etc, and a 2nd floor with extra inventory storage. It was built custom by the current owner after 36 years in the industry already(He started in 1965 and built the building in 2002). It is a great location.

Growth and Expansion: A new owner can increase their sales efforts to other repair shops, dealerships, and customers. It is easy to do. In the past, they did more sales or marketing as you can see from the advertising budget and direct relationship to revenues. They have a great website that is optimized but can still be improved. Their large sign is also important since it was grandfathered in based on its very large size and the new owner can convert it to digital giving them more exposure and the chance to advertise maintenance specials, etc. Their location is on a corner with a fairly new stop light on what is now a 6 lane major artery in Denver. This will increase business.

They are recession-proof because they make necessary repairs. In fact, when the economy slows, people will fix cars before they will replace them.

Plus, Colorado is the best State in the country to own a business. Colorado is the "#1" fastest growing and strongest economies in the United States.

Thank you for your consideration.

Sincerely,

Jeff Chapman Eisnaugle
303-905-7607 Direct
303-284-7025 Main
720-524-6482 Fax
jeff@businessbrokercolorado.com

This is prepared by Business Broker Colorado LLC with Company Broker Group LLC being the managing broker with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Business Broker Colorado LLC and Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.


Growth & Expansion

A new owner can increase their sales efforts to other repair shops, dealerships, and customers. It is easy to do. In the past, they did more sales or marketing as you can see from the advertising budget and direct relationship to revenues. They have a great website that is optimized but can still be improved. Their large sign is also important since it was grandfathered in based on its very large size and the new owner can convert it to digital giving them more exposure and the chance to advertise maintenance specials, etc. Their location is on a corner with a fairly new stop light on what is now a 6 lane major artery in Denver. This will increase business.

Seller Financing

10%

Market Competition:

This shop has processes and procedures that are very thorough and assures that the vehicles are repaired correctly the first time. This is one of the reasons that other repair shops and dealerships refer their customers to them. The average repair is only 2 to 3 days. This business has many long-standing relationships with other repair shops all over Denver. It took years to establish these highly-profitable relationships. This is very valuable to the new owner going forward and means that the new owner will step into a steady stream of work at the closing.

Location Details:

Awesome Location: The property was re-landscaped and the shop rebuilt in 2002. It has a custom built, 5,856 square foot building with a lot of special features. The building and property has been lowered to 1.7M from 1.75M. The owner want to sell the building as part of the purchase of the business or a separate transaction on the same day. They had an appraisal done in August 2018 which indicated a value of 1.6M and their area has seen a lot of new investment since then especially around them. Great floor plan which is custom and very functional and efficient. Security cameras and plenty of parking. Can accommodate more employees and future growth. They have no underground tanks, 6 lifts including 1 18,000 pound lift, 1 12,000 pound lift, and 4 9,000 pound lifts. They also have a large scissor lift that pulls inventory down from shelves and from the 2nd to 1st floor, various jacks, large compressors, numerous tools, small equipment, etc. There are two 12 foot garage doors and four 10 foot, swamp cooling, radiant heating, large employee area with lockers, shower, etc, and a 2nd floor with extra inventory storage. It was built custom by the current owner after 36 years in the industry already(He started in 1965 and built the building in 2002). It is a great location.

Support & Training

The Sellers can train a new buyer with little or no experience but the buyer must have the drive and aptitude or experience. He believes it could take as little as 3 to 4 months for a buyer with no experience.

Reason for Selling:

Retiring

Listing ID: 18082

Listed by:

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