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SOLD ‘Q2 2019!

OC European Automotive Repair Shop Solid Net Turnkey Motivated Seller!
Santa Ana, CA – (Orange County)

  • Asking Price: $395,000
  • Cash Flow: $220,000
  • Gross Revenue: $630,000
  • FF&E: $50,000
  • Inventory: N/A
  • Established: 2011

Business Description

OC European Automotive Repair Shop Solid Net Turnkey Motivated Seller! – Motivated owner forced to sell this highly regarded European automotive repair shop due to unexpected relocation. Business has a solid and growing roster of referral partners and has been growing steadily year over year. Includes all FFE at a replacement value of $50,000.00. which is included. Handles non-Euro cars as well, but all of the VW, Audi, Saab, Mercedes, BMW etc…owners and even the dealers seek this repair shop out for solid work, solid pricing, and great overall value for the customer.

Has 3 employees (mechanics, receptionist) that can be retained, as this is not an owner-operator operation. Has all invoices for financial due diligence verification of gross sales, and with minimum overhead, this is a cash cow for the owners.

NDA is required to do a drive-by and if you want to schedule an appointment to speak to the Seller outside of normal business hours.

Detailed Information

  • Employees: 1
  • Furniture, Fixtures, & Equipment (FF&E): Included in asking price
  • Facilities: Fully built out, turnkey, all tools save Seller’s personal tools and supplies needed. Hoists, computers, plenty of workspace, Seller has an immaculate shop and has pride of ownership.
  • Competition: Auto repair is fickle, but this Seller has groomed the surrounding community to define this shop as the go-to expert for European automotive issues. Even dealers send them work.
  • Growth & Expansion: Business gets great reviews and reputation is rock solid. However, the owner has admittedly mismanaged his employees and hasn’t run the business very efficiently. A new owner with better management skills could significantly grow this business into something substantial.
  • Financing: $195K down and $200K to be seller-financed at a rate of 5% for 48 months. Monthly pay
  • Support & Training: 8 weeks 20 hours per week.
  • Reason for Selling: Relocation.

Industry Overview

Companies in this industry provide repair and maintenance services for passenger cars and light trucks. Major US companies include Firestone Complete Auto Care (a unit of Bridgestone), Jiffy Lube, Meineke, Midas, Monro Muffler Brake, and Safelite Group.
The global automotive repair and maintenance services industry is forecast to grow at a double-digit compound annual rate between 2015 and 2025, according to Future Market Insights, driven by increasing vehicle production and growing demand from emerging markets, notably China and India.

The US automotive repair and maintenance services industry includes about 160,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $115 billion.

Competitive Landscape

Demand depends on miles driven and the number of cars on the road. The increased complexity of vehicles, which makes it more difficult for vehicle owners to perform do-it-yourself repairs, is also driving demand. The profitability of individual companies depends on convenient location and good marketing.

Large companies can maximize use of expensive diagnostic equipment and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by providing superior customer service or offering specialized services. The US industry is highly fragmented: the 50 largest companies generate less than 10% of revenue.

Competition includes other venues that provide automotive services, including some gas stations, car dealerships, and branches of mass merchandisers, like Sears and Kmart. An estimated 80% of all automotive repair work in the US is performed by independent shops as opposed to factory-authorized dealers, according to the Automotive Service Association.

The advent of autonomous vehicles presents a long-term threat to auto body and repair shops. Consulting firm McKinsey predicts that driverless cars could reduce US auto accidents by 90%, greatly reducing the need for body work and other types of repairs. Already, features such as automatic braking, sensors, and onboard cameras are reducing the number of vehicle collisions and demand for bodywork and other repairs.

Products, Operations & Technology

Major services include body repair, scheduled and preventive maintenance, oil changes, car washes, and brake repair. Body work includes exterior and interior repair and glass replacement. Mechanical jobs are classified as repairs to undercar systems (mufflers and exhausts, transmissions, brakes, and shock absorbers) or under hood systems (engines, electrical systems, radiators).

The industry includes national and regional chains, franchises, and independent operators. The majority of auto repair shops are independently owned, although many are franchises of large companies. Car repair shops may specializing a particular field of repair, such as brake jobs or collision repair, because of the specialized knowledge and equipment required. Most companies in the mechanical field provide generalized services, such as regular maintenance, in addition to specialty services.

In auto repair shops, estimators review vehicles and give customers quotes on the approximate cost of a repair. Estimators may rely on car makers’ recommendations or computer software to help develop an accurate estimate. Repairs sometimes uncover other problems, resulting in additional work and charges in excess of the estimate. Regardless of the cause of error, inaccurate estimates have resulted in unhappy customers and general mistrust of the industry.

Mechanical repair shops deal mainly with deterioration of parts due to normal wear. Common repairs involve air conditioning, brake, transmission, and electrical systems. Because of the increased technological complexity of newer cars, most shops have specialized diagnostic equipment to identify and fix problems. Shops typically keep an inventory of replacement parts or have arrangements with quick delivery parts suppliers. Experienced, well-trained auto technicians are critical to quality repair work. Companies may also employ apprentice or entry-level technicians.

Collision repair involves two distinct types of repair: body work and painting (or refinishing). In the body shop, technicians correct damaged car frames and panels. Each repair is unique and depends on the accident that caused damage. The painting process includes several standard steps and operates more like an assembly line. Paint preparation includes feathering (smoothing the surface) and priming. Paint application typically involves applying multiple coats. Finishing provides a protective clear coat. Collision repair jobs usually take four to eight days. Equipment includes welders, paint booths, frame machines, and plasma cutters. Key staff includes framers, technicians, and painters.

A typical mechanical repair shop has seven service bays and handles 200 repairs a month, according to the Automotive Service Association (ASA). A typical body shop has 15 bays and handles about 190 repairs per month.
Auto repair shops may buy replacement parts and supplies from full-line vendors, such as NAPA, or have supply arrangements with multiple distributors. Some large companies have purchasing contracts with specific suppliers. Chains of repair shops often maintain parts distribution centers to minimize the parts inventory needs at individual stores. With hundreds of parts needed for thousands of car models and production years, individual stores can’t keep complete inventories. Shops may install OEM or aftermarket (rebuilt) parts.


Many shops use computerized information systems to help manage point-of-sale, inventories, purchasing, accounting, and customer relations. Database programs give companies fast access to customer and vehicle information and repair histories. To speed communication on the shop floor, technicians are using tablets, laptops, and smartphones to communicate with each other, with customers, and insurers. Mobile apps that deliver data and other repair-related information via smartphone to technicians are helping speed repairs.

Many shops have websites that communicate basic information, including hours of operation and services performed. Some companies allow customers to schedule appointments or obtain estimates online. Some shops also offer online status updates on repair work for customers. More auto repair and maintenance shops are using social media and other digital communication tools, including mobile apps, to stay connected with customers.

Sales & Marketing

Almost 80% of auto shop customers are repeat, according to the Automotive Service Association (ASA). Auto repair shops typically draw customers from a 20-mile radius.

Marketing and promotional vehicles include the internet and social media; phone directories; signage; local newspaper, TV, and radio ads; and direct mail. Because business related to insurance claims can be a large percentage of sales, relationships with insurance agents and companies are important for large body shops. About a third of body shops report higher profits after affiliating with an insurance-sponsored direct repair program (DRPs), according to BodyShop Business.

Because companies tend to rely on repeat business, maintaining customer satisfaction is crucial. A good reputation among customers can yield valuable word-of-mouth advertising. Recommendations and links from consumer ratings websites, such as Yelp and Angie’s List, also can help generate referrals.

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