Automotive Fleet Repair with Mobile Trucks
$2,000,000
This is a specialty manufacture thatmanufactures engineered aluminum honeycomb panels, ceiling panels and extrudedchanneling sold to contractors for installation of cleanrooms for semiconductorcompanies throughout the US and abroad.
Whether the customerneeds just basic mechanical auto repair, transmission repair or replacement,complicated diagnostics or electrical service, engine repair, or brakes, theOwner has created a one stop repair shop. With 22 service bays and 12 Technician working on over 9,840 vehicleseach year with an average ticket of $1,012.00.
HISTORY: The businessstarted with vehicle sales, body shop work, wholesale parts, and automotiverepairs. Vehicle sales, however, wereunpredictable and took considerable time.
In 2016, the Owner decidedto lease out vehicle sales and the body shop to maximize efficiency andresources with he retained control over both the parts and service departments,ensuring he remained at the heart of the dealership’s core operations.
In 2018 the Owner had anopportunity to reduce overhead and move the business across the street where hetransitioned to being an auto repair shop.
When COVID hit in 2020the retail customer sales were reduced drastically due to the work forceworking from home. He strategicallypivoted away from retail walk-ins, repositioning the company as afleet-exclusive service provider. Thiswas a great masterful decision. Thisstrategy focused on several key advantages:
- Consistent, predictable monthly revenue.
- Strong, long-term relationships with corporate and utility clients.
- Higher technician utilization rates due to fleet volume scheduling.
- Reduced marketing and advertising spending.
Today,the company is recognized as one of the premier independent fleet serviceproviders in Washington State. Theprocess that are in place are very powerful and has allowed the Company toconsistently set record levels of statistics for the industry. For example, the average repair order for theindustry is $567.00 per repair order. The company has an average of $1,012.00 per repair order, which is farabove the industry. With a strongindustry outlook Kent Performance Center is poised for strong growth.
SALES AND SELLER’S DISCRETIONARY CASH FLOW:
MARKETING STRATEGY: Since pivoting to fleet customers,the Company has drastically reduced its marketing budget. As part of a growth opportunity, a new ownermay want to start traditional marketing for the retail customer.
FURNITURE, FIXTURES,VEHICLES & EQUIPMENT: Included in the purchase price is Inventory $50,000, Vehicles $38,000, ShopEquipment $56,000 and Office FFE, $20,000. The FF&Ehas been re-casted to reflect an estimate to replace the assets with the sameor similar assets in the marketplace used.
DAYS AND HOURS:Monday through Friday hours are 8:00 am to 5:00 pm.
EMPLOYEES: The Company employees 3 servicewriters, shop foreman, parts manager and twelve technicians. The Owner is always looking to hire qualitytechs.
FACILITIES: The shop is in a free-standingbuilding that is approximately 26,000 square feet with 22 bays outside with areception area, several offices and customer waiting area. The parking is a fenced and gated lot hasapproximately 50 spaces to park vehicles The lease is for $18,222.00 per month, plus NNN charges. Doug would consider selling thebuilding for the appraised value of $2,900,000.
REASON FOR SALE: The Owner has is at retirement age and would like to move to his home inIdaho after the transition.
TERMS: The asking price is $2,000,000. This is an SBA transaction with Buyer’s cashinfusion of $190,000 and bank loan of $1,800,000. The term of the loan is for10 years at an interest rate of 8.50% with payments of approximately $22,317.00per month.
INITIAL INVESTMENT: The buyer will need to have approximately $285,000.00 for thefollowing acquisition cost:
$200,000.00 Down Payment for Acquisition
$10,000.00 EstimatedExpense for Bank Fees, Attorney Fees, and Closing Cost.
$75,000.00 Working Capital
The buyer will have a State of Washington salestax. Please complete your own duediligence in factoring this tax.
Directions: Contact Bill Billingsley for more information at (503) 233-8600, Extension 1 or e-mail billbo@thecbbgroup.com.
No additional information will be released until the buyer has been pre-qualified by the Broker.
NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN