🚗🔧 I found an interesting opportunity for sale in the automotive sector that’s perfect for someone looking to grow a profitable service-based business.
• The market: Collision repair • The target: Insurance-based claims Here’s the breakdown: If you're into the auto industry and love working with cars, this could be the deal for you. This Arizona-based collision repair center generated $2.2M in revenue last year. It brings in strong earnings of $1.3M. And the best part? They’re one of the largest OEM parts purchasers from AutoNation in the nation. Let’s dive in: This business has a loyal customer base, with 50% repeat business, and the rest coming from Google reviews and referrals. Their unique model focuses on increasing revenue per vehicle instead of working on a high volume, keeping margins healthy. So, why isn’t this market dominated by big chains? Because their pricing flexibility (no contract with insurers) and 100% use of OEM parts sets them apart. You need someone who can maintain that level of service and reputation. Here’s what makes this deal stand out: • Established in 2016 with a strong local presence • Revenue of $2.2M, with net earnings of $1.3M in 2023 • Asking price is $4.8M, with a multiple of 3.6x Now, let’s talk about the lease and operations: They’ve got a low-overhead setup by using subcontractors and a manageable employee count (2 W2 staff). The current shop handles 3-5 cars a week, and the owner only works around 20 hours a week—plenty of room to increase capacity! This business is primed for growth: • Expand to more working days (they’re only open 4 days a week) • Add digital marketing to reach a larger audience • Consider partnerships with direct repair programs to drive more volume With the population booming in the area, there’s huge potential to grow. 6,000 new homes are being built nearby! The current owners are ready to move on, creating a unique opportunity for someone new to take the wheel. Here’s the game plan: Step 1: Take over and maintain the existing model that brings in high-margin work. Step 2: Scale operations by expanding services, increasing working hours, and marketing.