šŸš—šŸ”§ I found an interesting opportunity for sale in the automotive sector thatā€™s perfect for someone looking to grow a profitable service-based business.
ā€¢ The market: Collision repair
ā€¢ The target: Insurance-based claims
Hereā€™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?
Theyā€™re one of the largest OEM parts purchasers from AutoNation in the nation.
Letā€™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 isnā€™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.
Hereā€™s what makes this deal stand out:
ā€¢ Established in 2016 with a strong local presence
ā€¢ Revenue of $2.2M, with net earnings of $1.3M in 2023
ā€¢ Asking price is $4.8M, with a multiple of 3.6x
Now, letā€™s talk about the lease and operations:
Theyā€™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 weekā€”plenty of room to increase capacity!
This business is primed for growth:
ā€¢ Expand to more working days (theyā€™re only open 4 days a week)
ā€¢ Add digital marketing to reach a larger audience
ā€¢ Consider partnerships with direct repair programs to drive more volume
With the population booming in the area, thereā€™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.
Hereā€™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.
This isnā€™t just any business; itā€™s a chance to own a profitable collision repair center with massive growth potential.
Like this deal? Comment ā€œCollisionā€ below to get more info on this and other deals like it!
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2 comments
Moran Pober
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šŸš—šŸ”§ I found an interesting opportunity for sale in the automotive sector thatā€™s perfect for someone looking to grow a profitable service-based business.
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