They repair and perform regular maintenance on all types of automobiles, light trucks, and RV’s. There are 5 employees: 1 Front of house who handles most of the phone calls and walk ins, 1 who helps with front of the house, admin, and checks the cars after they are repaired, 2 rebuilders, and one remove and replace. All are mechanics whom have been well trained. If a new owner wants to grow and add employees, they have some advantages: Location in the middle of Denver location with plenty of parking, steady stream of revenues(not seasonal) makes them feel more secure, great wages, 4 different sources of help including books, vendors training, other employees, and the internet if needed. One internet site shows how a specific problem has been successfully repaired multiple times in the past. The current employees have all been loyal to the company with 2 of them being there over 10 years. The Sellers can train a new buyer with little or no experience but the buyer must have the drive and aptitude or experience. He believes it could take as little as 3 to 4 months to train a buyer with no experience.
They also carry a large inventory of used, rebuilt, and new parts as you can see in the video walk through video you will receive after submitting the non-disclosure agreement in the link above.
The average repair is only 2 to 3 days. This business has many long-standing relationships with other repair shops all over Denver. It took years to establish these highly-profitable relationships. This is very valuable to the new owner going forward and means that the new owner will step into a steady stream of work at the closing. The new owner believes there will be no issues in the transition as long as the quality of work that they do does not change.
They have an extremely clean and professional shop. He estimates that his FF & E including everything except leasehold improvements are 40K but based on my experience it looks like a lot more than that to me.
The business is 54 years old and has a solid name and the finest reputation for fair dealings. The seller will agree to full Reps and Warrantees to a solid legal and business standing, no “ghosts in the closet”. They have a great record for safety (OSHA) and no legal battles. They have never left a job incomplete. If the client has a problem with their work, they fix it. The seller’s willingness to carry a portion of the sales price speaks volumes about his confidence in the short and long term performance of the business and the cash flow and revenue expectations.
Awesome Location: The property was re-landscaped and the shop rebuilt in 2002. It has a custom built, 5,500 square foot building with a lot of special features. The building is for sale for $1,750,000. They had an appraisal done in August 2017 which indicated a value of $1.6M and their area has seen a lot of new investment since then especially around them because of the new light rail station less than 3 blocks away. Great floor plan, very functional, and efficient. Security cameras and plenty of parking. Can accommodate more employees and future growth. They have no underground tanks, 4 lifts including 1 18,000 pound lift, 1 12,000 pound lift, and 2 9,000 pound lifts. They also have a large scissor lift that pulls inventory down from shelves and from the 2nd to 1st floor, various jacks, large compressors, numerous tools, small equipment, etc. There are 6 12 foot garage doors, swamp cooling, radiant heating, large employee area with lockers, shower, etc, and a 2nd floor with extra inventory storage. It was built custom by the current owner after 28 years in the industry already(He started in 1965 and built the building in 2002). Their sign on Federal Blvd is also important since it was grandfathered in based on its very large size and the new owner can convert it to digital giving them more exposure and the chance to advertise maintenance specials, etc. Their location is on a corner with a fairly new stop light on what is now a 6 lane major artery in Denver. This will increase business. It is a great location.
Growth and Expansion: A new owner can increase their sales efforts to other repair shops, dealerships, and customers. It is easy to do. In the past, they did more sales or marketing as you can see from the advertising budget and direct relationship to revenues. They have a great website that is optimized but can still be improved. Their sign is also important since it was grandfathered in based on its very large size and the new owner can convert it to digital giving them more exposure and the chance to advertise maintenance specials, etc. Their location is on a corner with a fairly new stop light on what is now a 6 lane major artery in Denver. This will increase business.
They are recession-proof because they make necessary repairs. In fact, when the economy slows, people will fix cars before they will replace them.
Plus, Colorado is the best State in the country to own a business. Colorado is the “#1” fastest growing and strongest economies in the United States.
Thanks for your consideration,
Jeff Chapman Eisnaugle