Specialist Used Car Dealer with Workshop
Location : Lancashire
Asking Price : £350,000
Turnover : £919,000
Net Profit : £80,000
Gross Profit : £184,000
EBITDA : £101,000
Net Asset : Undeclared
Premises : Freehold
Confidentially offered for sale
Prime Freehold site circa £200,000
Turnover for last financial year circa £919,000 p.a.
Gross profits circa £184,000 p.a.
Operating Profit circa £80,000 p.a
Adjusted EBITDA pre directors drawings circa £101,000 p.a.
3 trading websites (inc. EBay and Autotrader)
Ground floor sales office
Large well maintained forecourt
Established & loyal client base
Impressive repeat business levels
All tools and equipment
Training and handover
This business was established some 28 years ago. During this time it has forged a sterling reputation, both regionally and nationally, as a trusted and knowledgeable business within the well-known and hugely popular marque it specialises in. The business has grown to become a trusted dealer within the locality with a reputation for the quality of its cars, competitive prices and excellent after sales care. Its range of services includes:
• Car Sales (this represents circa 80% of current revenues)
• Servicing & Repairs
• MOT (however this is subcontracted out to a third party)
The business operates from a high profile freehold location with superb facilities and highly visible forecourt frontage, being situated on a major road. The site is a real asset of this business. Many current customers have been loyal to the business since the beginning and this has been due in no small part to the business’s specialist nature, competitive prices, quality products, service and attention to detail.
As well as the site the business has an excellent internet presence with its own interactive site, as well as EBay and Auto Trader sites so customers can browse/purchase current car stocks.
A vital component to this business’s success to date has been customer service, which is focused to a great extent on pre/after sales, the place where the reputation of the business can be made or lost. This company ethos means the business enjoys good levels of referrals.
The site itself can accommodate some 30-35 cars on the forecourt at any one time, that ensures there is always a good choice of vehicles for customers to view. There is good access and the forecourt is viewer friendly. The vendor has continued to invest in the business over the years and it has a fully equipped workshop facility that enables it to carry out its duties as required.
All workshop equipment and office equipment is included within the sale price. This includes ramp, specialist diagnostic equipment, specialist manufacturer software, tools etc. Car stock is optional. Typical car stock holding is circa £150-200,000.
The business considers that happy customers come back and on that simple basis has maintained levels of product and service quality intended to best guarantee that happiness.
The company enjoys excellent customer retention levels in terms of serving and repair and also benefits from repeat business from customers as and when they are ready to upgrade to their next car.
• High Profile Location
• Asset base and profitability
• Market Presence
• Customer Base
• Infrastructure (fully equipped workshop and offices)
• Levels of customer service
This is an outstanding opportunity to build on the existing business levels and customer base of this company, backed by a strong reputation. With a strong demand for this business’s cars, combined with a capacity to increase the range of both cars and services on offer and turnover, a new owner contributing fresh ideas and enthusiasm could certainly take this business forward.
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business has enjoyed consistent performance to date and its specialist reputation is growing year on year. The owners have put all the foundations in place for future success. No further investment in the premises would be required for a new owner to continue trading for a considerable amount of time.
Prime freehold site circa £200,000
Sales revenue for last financial year circa £919,000 per annum.
Resultant gross profits circa £184,000 p.a.
Typical stock holding circa £150-200,000. (car stock is optional)
With a new injection of energy the business could certainly increase revenues further as the marque the company specialises in is as popular as ever.
The asking price of Offers In The Region of £350,000 is for 100% of the issued share capital and includes the freehold site/premises (circa £200,000) and all plant and equipment. It excludes current car stock (optional) and is on a cash free debt free basis.
The business advertises through Auto Trader and EBay portals. It also has its own informative website, which illustrates current car stock with car specifications etc.
The business has enjoyed consistent levels of business over the last few years. There are many areas for expansion not least better utilisation of the workshop facilities the business has at its disposal. The workshops are generally used for servicing and maintaining the current stock with a small percentage of revenues being generated through customer repairs. There is no reason why a new owner could not develop this side further and offer tyre fitting/ smart repairs/alloy wheel refurbishment etc. to clients, both existing and new in both the trade and retail market.
The business operates from high profile freehold premises circa £200,000. This is included within the asking price. The forecourt is large and can accommodate some 30-35 cars at any one time. There are also offices and a fully equipped workshop with ramp.
The company also rents an adjacent piece of land which provides additional forecourt space. Rent and rates on this are circa £13,000 p.a.
Monday – Friday: 0800-1800
There are 2 directors who work in the business through choice. The business also employs a full time mechanic, a part time salesman, part time valeter, part time finance person, and part time administrator.
The owner will provide full business familiarisation, training and handover to ensure a smooth transition of the business to new owners.
If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at firstname.lastname@example.orgTurner Butler Disclosure Statement
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