OFF-MARKET ‘Q4 2022
Engine Cylinder Head Rebuilding Company 460k Inventory Incl
Sylmar, CA (Los Angeles County)
Asking Price: $295,000
Cash Flow: $101,000
Gross Revenue: $433,000
EBITDA: N/A
FF&E: $60,000 Included in ask price
Inventory: $460,000 Included in ask price
Established: 1978
Employees: 6
Business Description
For the past 44 years, the Company has successfully rebuilt engine cylinder heads while developing an inventory of replacement heads and parts so customers can bring theirs in to be worked on, or immediately exchanged. Customers remove the cylinder head from their car, truck, boat, forklift, farm equipment, generator, motorcycle, etc., and bring it to the shop.
“At the core of our business practice, exchanging cylinder heads is a unique service,” said the Seller. 80% of customers are auto repair shops, engine rebuilders, and car dealers. Warranty work accounts for about 10% of efforts. 20% are people who repair and restore their own vehicles or seeking cylinder heads not widely available.
Today, a wide variety of cylinder heads are included in the extensive inventory with a cost value of more than $300,000. There is an additional $100,000 in head cores and $3,000 worth of head bolts. A highly detailed inventory is available to highly qualified buyers for review in due diligence. All inventory is subject to daily operations final counts may vary at closing.
The Sellers, (a husband-and-wife team) purchased the 20-year-old business in 1998 from the original owner. Mrs. Seller initially worked in the office part-time but has taken over as the lead partner in the last few years.
Detailed Information
Facilities:
The business has been at its present since 1986. The approximate 5,800 square-foot facility rents for $6,683 per month. The lease runs through 1/31/2024 with an expected 4% increase in 2023.
Competition:
There are some similar shops in the great Los Angeles Valley area. Some are focused on high-performance, while others do a lower-quality job. Online companies have sprung up in recent years with lower overhead, but the move to offer to ship will combat those. Overall, the business is highly respected and clients know that they will get what they pay for.
Growth & Expansion:
To increase profits and move older inventory, the Seller suggests expanding the website, making sales online, and offering to ship out of state. The business is not set up for shipping.
≈ Branch out into high-performance heads or expand automotive services if the Buyer has the capital to purchase more equipment.
≈ Shipping options will help expand the service area and reach out-of-state car owners, small town mechanics, and classic car enthusiasts.
≈ Actively market the business to car clubs, dealerships, schools, Google Ads, etc.
Financing:
Not currently offered.
Support & Training:
To ensure a smooth transition and ongoing success the Sellers will work with a buyer as needed for a month, however, the foreman will be able to ensure ongoing success.
Reason for Selling:
It’s time to retire.
DEAD-Engine Cylinder Head Rebuilding Company for Sale
