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Ag and Auto Repair Business S876

Map image of Southwest Kansas
Southwest Kansas
Status: Privately Sold

Proudly serving its South Western Kansas town and rural population for over 30 years, this Ag, Auto and Parts Service Business has some exclusive access to a substantial market. Core competencies are the prompt and reliable repair of automobiles, agriculture equipment, trucks and trailers, parts sales, and special service calls to multiple farm sites in the area. Primary customers are made up of farmers, ranchers, feedlot operators, farmer’s cooperatives, local school districts and resident personal vehicles. Their back lot is constantly filled with new awaiting business, due in part to a remarkable amount of repeat business as they are the only shop for 22 miles. The business also comes equipped with a comprehensive repair shop complete with the following equipment: A diagnostic equipment scanner for car computers, vantage scanner, a/c gauges, tractor splitting equipment, truck transmission jacks for replacing clutches and transmissions, brake lathe, wheel dolly and two hydraulic car lifts. The premises is also outfitted with an air compressor and parts storage, a lower floor storage room with a front showroom, a good stock of parts for sale in their store, a main shop which is 50’ by 140’ and a back lot for waiting cars measuring 150’ by 140’ that is nearly always full of vehicles awaiting service. The current owner believes it would be beneficial to expand knowledge of farming equipment in order to expand operations. A marketing campaign would also be beneficial to add new clients and expand market. Sales has been derived from 3 primary categories; 65% from personal auto’s 20% large commercial vehicles and 15% agricultural repair. This business employs 5 employees besides the owner, 4 on a full-time basis and 1 part-time; 3 are technically qualified and 2 are cross-trained front office / assistants. All technicians are highly trained and ASE certified. Historically the business has consistently produced gross revenues in excess of $300K, currently $370K (2014). Earnings before interest and taxation or operating profit margins for the business are estimated to be in line with industry standards. Annual discretionary cash flow earnings to a new owner, i.e. adjusted EBITDA, are estimated to be more than $100K (~28%), sufficient free cash flows to service debt financing and receive a reasonable remuneration package.