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Specialist Used Car Dealer with Workshop

Freehold

Ref. AM165

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


  • Turner Butler

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Asking price: OIRO £350,000 plus Car Stock (optional)

Asking price includes:

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)
Workshop/Valeting area
Ground floor sales office
Large well maintained forecourt
Superb reputation
Established & loyal client base
Impressive repeat business levels
All tools and equipment
Training and handover
Goodwill
Websites

Business Profile

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
• Parts
• 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.

Equipment:

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.

Customer Service:

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.

Key Strengths:

• High Profile Location
• Asset base and profitability
• Reputation
• Market Presence
• Customer Base
• Infrastructure (fully equipped workshop and offices)
• Levels of customer service
• Websites

Key Opportunities:

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.

Financial Information:

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.

Asking Price:

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.

Advertising and Marketing:

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.

Growth and Expansion:

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.

Premises:

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.

Business Hours:

Monday – Friday: 0800-1800
Saturday: 0800-1700
Sunday: 1200-1600

Employees:

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.

Support and training:

The owner will provide full business familiarisation, training and handover to ensure a smooth transition of the business to new owners.

Reason for Sale:

Genuine retirement

Looking for finance ?

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 finance@turnerbutler.co.uk

Turner Butler Disclosure Statement

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk