Automotive Performance Enhancement Business For Sale

Business description

This is an outstanding business that has successfully traded in Melbourne for over 35 years. The current owner has operated the business since 1990, since which time the business has built an enviable reputation and has become a dominant player within the performance modification sector of the Melbourne automotive services marketplace.

Some salient points relating to this business are:

? Consistent sales exceeding $1.2m in each of the last 3 years
? EBITDA of $235,671
? Owner able to travel (68 days away from business last year)
? Strong cash flow
? Excellent brand awareness within industry
? 5 day work week
? Excellent growth potential
? Plant & Equipment value of $400,000 included in asking price
? ROI Potential 30%+

The business also comes with an attractive lease. And it is anticipated that all of the highly qualified and experienced staff would be willing to remain with the business.

At its peak, the business employed 9 fulltime mechanics and operated on14 hour work days. In recent years, the owner has opted for a more relaxed lifestyle and has cut his hours down, so that in 2006, he was able to travel for over two months … leaving the business to run under the shared management of his highly skilled team.

The vendor has now decided to focus his time and energy in supporting a family member on the international racing circuit, and as no succession plan is in place, this outstanding business is now being offered for sale. A very realistic asking price has been set to effect a quick sale.

This investment opportunity would ideally suit an individual or partners with management skills and a passion for high performance motor vehicles. Under the right management, this business could be driven to the next level of growth and efficiency.

Alternately, this investment opportunity would suit an established business looking to expand or diversify its operations and substantially increase cash flow.

Rarely is the opportunity presented where a business with such a solid pedigree and with such outstanding consistent cash flow is offered for sale.

Included in this offer are the following:

? 100% of the business assets of the business
? A business with a well established and broad customer base and one that provides a consistent strong cash flow;
? A well-established and well recognised trading name with a reputation for quality and outstanding service;
? Existing stable and well qualified staff;
? Modern and spacious premises including an open reception/product display area, offices and extensive workshop with lock up capacity of up to 22 cars;
? Excess capacity provided by the current premises that will support substantial business growth;
? Premises that are strategically located in an industrial estate near a very high traffic arterial with excellent access to other major arterials and freeways;
? The knowledge and trade experience of the current owner who is willing to train the new owner(s) during a suitable transition period if so requested.

Operations:

The current hours of operation of the business are generally:

Monday to Friday: 8:00 – 5:00

Products / Services:

The business currently provides a range of car services, from general car servicing through to performance modifications including:

? DYNO TUNING
? SERVICING
• Major & minor services
• Brake & gearbox checks & repairs
• A comprehensive 60 point safety check
• Electrical & engine management maintenance
? BRAKES
? SUSPENSION
? PERSONALISED POWER OUTPUT TAILORING
This can be customized to suit individual requirements and can be achieved through:
• Supercharging
• Fuel system modifications
• Exhaust enhancements
• Turbo charging
• Oil cooler placements
? FUEL ECONOMY ENHANCEMENT

Premises:

This business is strategically located in an industrial estate in an outer eastern suburb of Melbourne. Access to all parts of Melbourne is excellent.

The current lease on the premises including GST is $2,700 pm + outgoings. Three years remains on the current term and one three-year option period is available.

The premises include a spacious and bright reception and product display area and a side office. The workshop is large enough to store up to 22 cars overnight and includes 10 car bays and 4 vehicle hoists.

Equipment / Fittings:

A comprehensive list of Plant & Equipment will be provided during due diligence.

All existing Plant, Equipment and Fittings with a replacement value estimated at $400,000 are included in the asking price.

Management / Staff:

The current owner has been spending a lot of time away from the business over the last few years while supporting his son who is on the racing circuit. In 2006, he was away for 68 days in total. Clearly, the business did not suffer significantly during his absence.

The business has enjoyed a high staff retention rate which reflects its approach to staff mentoring and staff support.

The business currently employs 6 mechanics on a fulltime basis. Their tenure with the business ranges from two years to six years.

Other staff include an apprentice mechanic, a fulltime receptionist and a part time bookkeeper.

Transition

It is anticipated that all of the mechanics would choose to remain with the business following the sale. The vendor is happy to provide any required training during a suitable transition period.

The vendor believes that this business, under the direction of a more motivated and dedicated owner, could grow significantly in sales.

Growth could be driven by capturing a larger segment of the Melbourne market by increasing the number of mechanics on staff and by initiating some marketing, utilizing the existing database for marketing purposes.

Property information

Real Estate:

Lease

Other information

Trading hours:

Monday - Friday 8.00-5.00