Approved Paint Bodyshop And Mechanical Repair Garage For Sale

Business description

Established by the current owner almost thirty years ago, this business specialises in the recovery, repair and reconstruction of accident damaged motor vehicles – cars and light commercials. The business also undertakes mechanical repairs where they relate to accident damage.

Operating from almost 4,300 square feet of workshop situated on the prime industrial estate on the outskirts of one of the busiest commercial centres in Surrey, the highly skilled staff of this business are trained to reinstate all types of accident damage sustained by vehicles. As well as being an approved repairer for one of the largest vehicle management companies in the UK, this business is also approved to do warranty work on behalf of two major motor manufacturers as well as working with a number of large fleet organizations from both the public and private sector. The business also undertakes repairs on behalf of private motorists.

This business prides itself on providing a very high standard of repair and a high quality of customer service, using only methods recommended by the manufacturers and the insurance industry. Whilst it outsources its recovery service which operates 24/7, with excellent facilities on-site, the business has a particularly good reputation and is considered to be ‘the’ local operator, doing whatever is required to maximize customer satisfaction.

The business consistently receives very favourable results from the on-going audits carried out by its key customers to independently verify the standard of repair, levels of customer service and its adherence to regulations – COSHH, Health & Safety etc. Not surprisingly, with its excellent reputation, the business can boast a large volume of repeat customers.
Well established, this is a very well managed, independent bodyshop which is constantly busy. With turnover consistently in the region of £680,000 generating gross profits of almost 40%, it represents an excellent opportunity for an existing operator to expand its presence into its geographical area – a dealership looking to bring bodywork ‘in-house’ for example, or for a owner manager/operator to acquire a great foundation on which to build.

Customer service:

The whole focus of this business is customer satisfaction – frequently going the extra mile to achieve it. It offers courtesy cars and almost always has a vehicle on hand for private motoring customers. It is happy to collect cars to bring them into the workshop. When it makes a promise – for example when a vehicle will be ready – it keeps it. It offers a ‘no quibble’ guarantee in line with manufacturers recommendations. The results of this commitment are evident in the degree of return custom and the choice of this business by new customers over competitors.

Key strengths:

As a permanent fixture in this town stretching back almost thirty years, this business is very well established. It is well equipped with all of the equipment normally associated with a business operating in this sector and has an excellent network of local firms it can call upon for specialist requirements – vehicle recovery, replacement glass, air conditioning etc.

The company has built an excellent reputation for its high levels of workmanship, customer service, its honesty, reliability and highly knowledgeable and experienced staff. It has excellent facilities, processes and systems – both in the workshop and out – ensuring prompt, high quality service.

This extensive combination of attributes ensures the business has an extensive, strong commercial base and a high level of repeat custom – as an approved supplier with some major customers - many stretching back a number of years through the history of the business.

Financial information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover for the financial year ending July 2010 was approximately £680,000 generating gross profits of almost £265,000.

The Asking price of £125,000 is for a sale of the assets and goodwill in the business with assets and paint stock conservatively valued in the region of £32,000.

Property information

Property:

Leasehold

Lease terms:

The premises are available leasehold at an annual rent of £35,000 per annum, term to be agreed. Rates are currently £9,074 per annum.

Location:

The company operates from secure premises in a gated yard acquired by the current Owner of the business many years ago. It is situated on a medium sized industrial estate. The premises are almost 4,300 square feet in all, the overwhelming majority of which is workshop including a spray facility and paint mixing room. There is ample parking on-site with the capacity to hold up to 36 vehicles within the compound.

The premises are available leasehold at an annual rent of £35,000 per annum, term to be agreed. Rates are currently £9,074 per annum.

Business Operation

Expansion potential:

The current market for this business's products is stable but is forecast for significant growth for individual outlets with the necessary equipment in place, as more and more of the back street ‘metal bashers’ are forced out of the industry by the fast pace of technological advance within the automotive sector. This business is well positioned to take maximum advantage of this growth as it occurs.

Competition / Market:

The business benefits from high volumes of work from its on-going relationships with its key customers - accident management and insurance companies as well as Fleet Managers of several large corporates. Locally, with an excellent reputation and having been present within the town for a number of years, this business benefits from high levels of residual awareness and as a result the business invests little in marketing and advertising limiting its expenditure to entries in local editions of Thomsons and Yellow Pages. The business does not currently have a website.

Reasons for selling:

This is a genuine retirement sale.

Trading hours:

The business currently operates between 8.00 am and 6.00 pm, Monday to Friday with Recovery available 24/7.

Employees:

The current Owner oversees the day-to-day management of the business supported by an excellent Office Manager, together with five multi-tasking technicians in the workshop – split in technical terms almost equally between the paint department and the fitting/repair bays.

Other information

Support & training:

The current Owner will provide all necessary training and all relevant contacts to ensure a smooth transfer of the business to new Owners.