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Name:
#618 Specialty Automotive Repair
Categories:
Automotive
Region:
Colorado Springs, Colorado
Industries:
Auto Related; Service
Segments:
Auto Body & Repair; Service
Asking Price:
$199,500  
Down Payment:
$92,400  
Revenue:
$240,059  
Adj. Profit:
$100,218  
Adj. Profit Type:
Seller's Discretionary Earnings  

Specialty Automotive Repair – Providing over 55 years of quality service, this highly respected and well maintained full-service automotive repair shop primarily services high-end foreign model vehicles. With no active advertising, this business brings in customers based solely on its reputation. The real estate for this business, valued at $249,000 (subject to appraisal) is to be purchased with the business and is included in the total asking price of $448,500. This business currently operates with two vehicle lifts and there is opportunity for expansion into the adjacent property. The adjacent real estate  is optionally available for purchase at $331,000, but will not be sold separate from the business. Owners retiring.  November 2018 YTD Gross Sales have increased over 13% compared to the same period in 2017.  Contact Scott Densmore.    Scott@fbb.com    BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.