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Description

OC European Automotive Repair Shop Solid Net Turnkey Motivated Seller!
Santa Ana, CA – (Orange County)

  • Asking Price: $395,000
  • Cash Flow: $220,000
  • Gross Revenue: $630,000
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: N/A
  • Established: 2011

Business Description

OC European Automotive Repair Shop Solid Net Turnkey Motivated Seller! – Motivated owner forced to sell this highly regarded European automotive repair shop due to unexpected relocation. Business has a solid and growing roster of referral partners and has been growing steadily year over year. Includes all FFE at a replacement value of $50,000.00. which is included. Handles non-Euro cars as well, but all of the VW, Audi, Saab, Mercedes, BMW etc…owners and even the dealers seek this repair shop out for solid work, solid pricing, and great overall value for the customer.

Has 3 employees (mechanics, receptionist) that can be retained, as this is not an owner-operator operation. Has all invoices for financial due diligence verification of gross sales, and with minimum overhead, this is a cash cow for the owners.

NDA is required to do a drive-by and if you want to schedule an appointment to speak to the Seller outside of normal business hours.

Detailed Information

  • Employees: 1
  • Furniture, Fixtures, & Equipment (FF&E): Included in asking price
  • Facilities: Fully built out, turnkey, all tools save Seller’s personal tools and supplies needed. Hoists, computers, plenty of workspace, Seller has an immaculate shop and has pride of ownership.
  • Competition: Auto repair is fickle, but this Seller has groomed the surrounding community to define this shop as the go-to expert for European automotive issues. Even dealers send them work.
  • Growth & Expansion: Business gets great reviews and reputation is rock solid. However, the owner has admittedly mismanaged his employees and hasn’t run the business very efficiently. A new owner with better management skills could significantly grow this business into something substantial.
  • Financing: $195K down and $200K to be seller-financed at a rate of 5% for 48 months. Monthly pay
  • Support & Training: 8 weeks 20 hours per week.
  • Reason for Selling: Relocation.

Industry Overview

Companies in this industry provide repair and maintenance services for passenger cars and light trucks. Major US companies include Firestone Complete Auto Care (a unit of Bridgestone), Jiffy Lube, Meineke, Midas, Monro Muffler Brake, and Safelite Group.
The global automotive repair and maintenance services industry is forecast to grow at a double-digit compound annual rate between 2015 and 2025, according to Future Market Insights, driven by increasing vehicle production and growing demand from emerging markets, notably China and India.

The US automotive repair and maintenance services industry includes about 160,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $115 billion.

Competitive Landscape

Demand depends on miles driven and the number of cars on the road. The increased complexity of vehicles, which makes it more difficult for vehicle owners to perform do-it-yourself repairs, is also driving demand. The profitability of individual companies depends on convenient location and good marketing.

Large companies can maximize use of expensive diagnostic equipment and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by providing superior customer service or offering specialized services. The US industry is highly fragmented: the 50 largest companies generate less than 10% of revenue.

Competition includes other venues that provide automotive services, including some gas stations, car dealerships, and branches of mass merchandisers, like Sears and Kmart. An estimated 80% of all automotive repair work in the US is performed by independent shops as opposed to factory-authorized dealers, according to the Automotive Service Association.

The advent of autonomous vehicles presents a long-term threat to auto body and repair shops. Consulting firm McKinsey predicts that driverless cars could reduce US auto accidents by 90%, greatly reducing the need for body work and other types of repairs. Already, features such as automatic braking, sensors, and onboard cameras are reducing the number of vehicle collisions and demand for bodywork and other repairs.

Products, Operations & Technology

Major services include body repair, scheduled and preventive maintenance, oil changes, car washes, and brake repair. Body work includes exterior and interior repair and glass replacement. Mechanical jobs are classified as repairs to undercar systems (mufflers and exhausts, transmissions, brakes, and shock absorbers) or under hood systems (engines, electrical systems, radiators).

The industry includes national and regional chains, franchises, and independent operators. The majority of auto repair shops are independently owned, although many are franchises of large companies. Car repair shops may specializing a particular field of repair, such as brake jobs or collision repair, because of the specialized knowledge and equipment required. Most companies in the mechanical field provide generalized services, such as regular maintenance, in addition to specialty services.

In auto repair shops, estimators review vehicles and give customers quotes on the approximate cost of a repair. Estimators may rely on car makers’ recommendations or computer software to help develop an accurate estimate. Repairs sometimes uncover other problems, resulting in additional work and charges in excess of the estimate. Regardless of the cause of error, inaccurate estimates have resulted in unhappy customers and general mistrust of the industry.

Mechanical repair shops deal mainly with deterioration of parts due to normal wear. Common repairs involve air conditioning, brake, transmission, and electrical systems. Because of the increased technological complexity of newer cars, most shops have specialized diagnostic equipment to identify and fix problems. Shops typically keep an inventory of replacement parts or have arrangements with quick delivery parts suppliers. Experienced, well-trained auto technicians are critical to quality repair work. Companies may also employ apprentice or entry-level technicians.

Collision repair involves two distinct types of repair: body work and painting (or refinishing). In the body shop, technicians correct damaged car frames and panels. Each repair is unique and depends on the accident that caused damage. The painting process includes several standard steps and operates more like an assembly line. Paint preparation includes feathering (smoothing the surface) and priming. Paint application typically involves applying multiple coats. Finishing provides a protective clear coat. Collision repair jobs usually take four to eight days. Equipment includes welders, paint booths, frame machines, and plasma cutters. Key staff includes framers, technicians, and painters.

A typical mechanical repair shop has seven service bays and handles 200 repairs a month, according to the Automotive Service Association (ASA). A typical body shop has 15 bays and handles about 190 repairs per month.
Auto repair shops may buy replacement parts and supplies from full-line vendors, such as NAPA, or have supply arrangements with multiple distributors. Some large companies have purchasing contracts with specific suppliers. Chains of repair shops often maintain parts distribution centers to minimize the parts inventory needs at individual stores. With hundreds of parts needed for thousands of car models and production years, individual stores can’t keep complete inventories. Shops may install OEM or aftermarket (rebuilt) parts.

Technology

Many shops use computerized information systems to help manage point-of-sale, inventories, purchasing, accounting, and customer relations. Database programs give companies fast access to customer and vehicle information and repair histories. To speed communication on the shop floor, technicians are using tablets, laptops, and smartphones to communicate with each other, with customers, and insurers. Mobile apps that deliver data and other repair-related information via smartphone to technicians are helping speed repairs.

Many shops have websites that communicate basic information, including hours of operation and services performed. Some companies allow customers to schedule appointments or obtain estimates online. Some shops also offer online status updates on repair work for customers. More auto repair and maintenance shops are using social media and other digital communication tools, including mobile apps, to stay connected with customers.

Sales & Marketing

Almost 80% of auto shop customers are repeat, according to the Automotive Service Association (ASA). Auto repair shops typically draw customers from a 20-mile radius.

Marketing and promotional vehicles include the internet and social media; phone directories; signage; local newspaper, TV, and radio ads; and direct mail. Because business related to insurance claims can be a large percentage of sales, relationships with insurance agents and companies are important for large body shops. About a third of body shops report higher profits after affiliating with an insurance-sponsored direct repair program (DRPs), according to BodyShop Business.

Because companies tend to rely on repeat business, maintaining customer satisfaction is crucial. A good reputation among customers can yield valuable word-of-mouth advertising. Recommendations and links from consumer ratings websites, such as Yelp and Angie’s List, also can help generate referrals.

 

 

ProNova Partners Buyer Profile & NDA

***RED STARS ARE REQUIRED FIELDS*** This information is required and must be filled in completely before the Seller will release any vital information, including business address, financial due diligence package on file, and other sensitive confidential information. It will also be used by ProNova Partners to match your buyer profile with future similar engagements our firm has for sale. * Required






BUYER’S ACKNOWLEDGEMENT OF INTRODUCTION AND CONFIDENTIALITY AGREEMENT:

The undersigned, individually and on behalf of any partnership, corporation, company, individual, group of individuals, or other entity of any nature, type, or form for which the undersigned is acting or which the undersigned represents or is engaged or employed by (collectively, “Buyer”), acknowledges that ProNova Partners, the DBA of Ace Business Brokers, Inc. (CA DRE #01869984) and agents working for ProNova Partners (hereinafter, “Broker”) first introduced Buyer to, and provided Buyer with Confidential Information about the following business identified herein on this website (“Business”). Buyer further acknowledges that the Confidential Information, as defined herein, is valuable and proprietary to the Business, and that the Business and its owners (hereinafter, collectively, “Seller”) therefore desire to maintain complete confidentiality of all information disclosed to Buyer. Buyer further expressly acknowledges that such Confidential Information shall be provided to Buyer for the sole purpose of evaluating the possible purchase by Buyer of all or part of the stock or assets of the Business. In consideration of the acknowledgements and covenants of Buyer contained herein, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by Buyer, Buyer agrees as follows:

1. DEFINITION OF “CONFIDENTIAL INFORMATION”:

The term “Confidential Information” shall mean any and all information communicated, furnished, or disclosed, in whatever form, fashion, or medium, to Buyer regarding or related in any way or fashion to the Seller or to the Business which is proprietary and confidential to Seller, including without limitation the fact that the Business is for sale; all financial, database, production, marketing, scientific, statistical, research, operational, technical, and pricing information; business knowledge and know-how; business methods; business procedures, processes, and techniques; business manuals; manufacturing processes, procedures, and techniques; ideas; discoveries; inventions; developments; correspondence; records; data; databases; contracts; contract terms; vendor information; contractor information; customer lists; employee lists; and any other information made known to Buyer: (a) from any inspection, examination, or other review of the books, records, assets, liabilities, processes, or production methods of Seller; (b) from any communication with Seller or Seller’s broker, directors, officers, employees, contractors, agents, suppliers, vendors, customers or representatives; (c) during any and all visits to Seller’s premises; or (d) through disclosure or discovery in any other manner. Confidential Information shall also mean and include any information, data, or documents prepared by Buyer that incorporate, are based upon or arise from or as a result of any Confidential Information. Confidential Information shall not include information that, (a) is or becomes generally available to the public, (b) was known to Buyer on a nonconfidential basis prior to its disclosure to Buyer by the Seller or Seller’s Representatives, or (c) is independently developed by Buyer or its Representatives without the use of or reference to any Confidential Information.

2. NON-DISCLOSURE OF INFORMATION:

Buyer shall use the Confidential Information only for the sole purpose of evaluating the possible purchase by Buyer of all or part of the stock or assets of Seller, and shall not make use of the Confidential Information, in whole or in part, for any other purpose whatsoever. Buyer further agrees to keep confidential all of the Confidential Information and to take all reasonable steps to preserve the confidential and proprietary nature of such Confidential Information. Buyer acknowledges and agrees that all Confidential Information furnished hereunder shall be and remain the property of Seller. Buyer further agrees not to disclose or permit access to any Confidential Information, without Seller’s prior written consent, to anyone other than Buyer’s legal counsel, accountants, lenders, or other agents or advisors (“Buyer Consultants”) to whom disclosure or access is necessary for Buyer to evaluate the Business. Disclosure of the Confidential Information shall be made to such Buyer Consultants only for the sole purpose of evaluating the possible purchase by Buyer of all or part of the stock or assets of Seller, and Buyer represents and warrants that each such Buyer Consultant has agreed, prior to its receipt of Confidential Information, to abide and be bound fully by all terms and conditions of this Agreement to the same extent as Buyer so agrees and is bound. Neither Buyer nor Buyer Consultants shall use or permit the use of Confidential Information in any manner whatsoever, except as may be required for Buyer to evaluate its potential acquisition of the Business or as may be required by legal process. Buyer expressly agrees Buyer shall be responsible for any breach of this Agreement by Buyer Consultants, or by any of its or Buyer Consultants’ officers, directors, employees, advisors, agents, and representatives, and any of the above. If the Buyer does not purchase the Business, Buyer shall, at Seller’s sole direction, either destroy or return to Broker all information provided to Buyer, including without limitation Confidential Information, and Buyer shall not retain any copy, reproduction, or record thereof.

3. BUYER’S RESPONSIBILITY AND DISCLAIMER OF BROKER’S LIABILITY:

Broker has received information about the Business from the Seller, which information may include, but is not limited to, tax returns, financial statements, equipment lists, and facility leases. Based on information provided by Seller, Broker often prepares a summary description of the Business, which may include a cash flow projection, an adjusted income statement, or a seller discretionary cash flow statement. Buyer understands that Broker does not audit or verify any information given to Broker, nor does Broker make any representation or warranty, express or implied, as to the accuracy, completeness, or fitness for a particular purpose of the information, including without limitation the Confidential Information, of Seller. Broker does not in any way guarantee future business performance of the Seller or of the Business. Buyer is solely responsible to examine and investigate the Business, its assets, liabilities, financial statements, tax returns, and any other information and facts which might influence Buyer’s purchase decision or the price Buyer is willing to pay. Any decision by Buyer to purchase the Business shall be based solely on Buyer’s own investigation and that of Buyer’s Buyer Consultants, and not upon any information or investigation (if any) provided by Broker. Any costs, fees, and expenses incurred from consultations with advisors including but not limited to Buyer Consultants shall be at the sole expense of Buyer and Buyer’s exclusive responsibility to pay. Broker shall not have any liability or responsibility to Buyer and its officers, directors, employees, advisors, agents, and representatives, or to Buyer Consultants and their officers, directors, employees, advisors, agents, and representatives, or any of them, arising from, regarding, or related in any fashion to the use of any Confidential Information furnished to Buyer hereunder. Buyer, on behalf of itself and its officers, directors, employees, advisors, agents, and representatives, as well as on behalf of Buyer Consultants and their officers, directors, employees, advisors, agents, and representatives, or any of them, expressly disclaims, releases, and holds Broker harmless from and against any and all liability that does or may arise from or relate to (a) the use of the Confidential Information, (b) any errors therein or omissions therefrom.

4. NON-CIRCUMVENTION AGREEMENT:

The Seller has entered into an agreement providing that Seller shall pay a fee to the listing broker if, during the term of such agreement and up to twenty-four (24) months thereafter, the Business is transferred to a buyer introduced by the listing broker or a cooperating broker. Buyer shall conduct all inquiries into and discussions about the Business and Seller solely through Broker and shall not directly contact the Seller or any of the Seller’s representatives. Should Buyer purchase all or part of the stock or assets of Business, acquire any interest in Business or Seller, execute any lease at the Business premises, or become affiliated in any capacity with Business or Seller without Broker’s participation, or in any way interfere with Brokers’ right to a fee, Buyer shall be liable to the listing broker and the cooperating broker for such fee and any other damages including without limitation reasonable attorney’s fees, costs, and Broker’s expenses of collection.

5. DISCLOSURE REQUIRED BY LAW:

If Buyer or any of its agents or representatives is required by subpoena or other court order to disclose any Confidential Information, Buyer shall provide notice of such subpoena or order to Seller within seven (7) business days of Buyer’s receipt of same, and Buyer shall use reasonable best efforts to resist disclosure of any Confidential Information until an appropriate protective order may be sought, or a waiver of compliance with the provisions of this Agreement is granted in writing by Buyer. If, in the absence of a protective order or Buyer’s receipt of a written waiver of compliance, Buyer or any of its representatives is nonetheless in the written opinion of Buyer’s legal counsel legally required to disclose Confidential Information, then in such event Buyer may disclose such information, provided that (a) Seller is given a reasonable opportunity in advance of such disclosure to review the text and substance of such disclosure before it is made, and (b) said disclosure is limited solely to the Confidential Information specifically required to be disclosed.

6. REMEDIES AND INDEMNIFICATION:

Buyer expressly acknowledges that monetary damages would not be a sufficient remedy upon Buyer’s breach of the provisions of this Agreement, and Buyer further acknowledges that Seller and/or Broker shall be entitled to equitable relief, including without limitation injunctive relief and specific performance, in addition to all other remedies available at law or in equity. Buyer agrees to indemnify, defend, and hold harmless Broker from and against any and all losses, damages, liability, costs, fees, and expenses, including without limitation attorney’s fees, that Broker may sustain or incur as a result of Buyer’s breach of this Agreement.

7. FURTHER TERMS:

This Agreement is not, and will not be construed as, any form of a letter of intent or agreement between Buyer and Seller, or between Buyer and the Business, to enter into any type of transaction. This Agreement reflects solely Buyer’s agreement to maintain the confidentiality of the Confidential Information Buyer receives hereunder. This Agreement does not and shall not constitute any commitment or obligation on the part of Buyer, on the one hand, and Seller or Business, on the other hand, to enter into any transaction or contractual arrangement of any form, type, or nature whatsoever. Neither Buyer nor its agents or representatives will contact Seller’s employees, customers, landlords, or suppliers, nor linger or otherwise observe the Business, without Seller’s written consent. Throughout the term of this Agreement and for three (3) years thereafter, Buyer shall not directly solicit for employment any employees of Seller. However, Buyer shall not be prohibited from making general solicitations for employment not directed at the Business, nor from hiring any employee that responds to such general solicitations. Broker may act as a dual agent representing both Buyer and Seller. Seller and Seller’s successors are specifically intended to be third-party beneficiaries of the duties and obligations of this Agreement and may prosecute any action at law or in equity necessary to enforce this Agreement’s terms and conditions as though Seller were a party hereto. This Agreement can only be modified, amended, or supplemented in writing, signed by both Broker and Buyer and stating that it is a modification, amendment, or supplement to this Agreement. Waiver of any breach of this Agreement shall not be a waiver of any subsequent breach. This Agreement supersedes all prior and contemporaneous agreements and understandings between the Buyer and Broker with respect to the subject matter herein. If any term or provision of this Agreement shall be deemed by any court decision to be invalid or unenforceable, the remaining terms and provisions of this Agreement shall remain and continue in full force and effect. This Agreement shall be construed under and governed by the laws of the State of Delaware, without regard to conflict of law principles. Buyer and Broker hereby irrevocably consent and voluntarily submit to jurisdiction and venue in the state and federal courts located in Orange County, California as related to any action instituted to enforce any terms of this Agreement. This Agreement may be signed in counterparts; faxed and electronic form signatures may be considered as originals. If Buyer is a corporation, partnership, company, or other such entity, the undersigned executes this Agreement on behalf of Buyer and warrants that he/she is duly authorized to do so and has the actual authority and power to bind the corporation, partnership, company or other such entity to this Agreement. Buyer acknowledges receipt of a fully completed copy of this Agreement, which shall be continually available on the site https://www.pronovapartners.com/.

~ Digital/Physical Signature Required ~ By typing my FULL NAME below I agree to be bound by all terms of paragraphs 1 through 7, and this entire Buyer’s Acknowledgment of Introduction and Confidentiality Agreement

*Please type your FULL NAME to validate your acceptance of all terms of this agreement.*

If you do not receive the CIM within 5 minutes – Check your SPAM FOLDER. The CIM is automatically sent out upon NDA submission. If you don’t see it within 5 minutes, please send an email request to [email protected] Or call us direct at 833-ProNova (833-776-6682) Thanks!

Contact info

Rick Carlson
Rick Carlson

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