Wholesale Auto Supply Distributor Serving Metro Denver

Price: $599,000

Location: Colorado

Industry: Automotive Parts

Listing ID: 501752

Listing Description

Well-Established and Highly Profitable Personal Service Business!

This growing business provides a personalized distribution service, including an inventory management system, that keeps track of the supplies that auto shops need and brings them directly to their door at wholesale prices.

The seller must sell for family health reasons that will be fully explained to a prospective buyer. This will not interfere with the orderly transfer of the business to a new owner.

It’s now a three-employee business that can be grown or left as is. The owner works in the business as one of two account manager/drivers. There is also a warehouse manager position. A new owner could stay in the account manager/driver role or grow the business by choosing to manage added account manager/drivers. The 3,000 square foot leased warehouse space is only being used to about 50% of its capacity. The delivery routes are efficient and have been well-designed. Those routes are also loaded with potential new customers.

Its customers are mostly auto repair shops, auto dealers and auto detail shops, but any business with a “shop” is a potential customer. The company’s most profitable products are fast-moving, frequently replenished, consumable shop supplies, auto cleaning and detailing products and automotive fasteners. Its customer base is made up of hundreds of shops and retailers within a fifteen-mile radius of their warehouse.

Account managers often even review and re-set customers’ shelves. This allows the owners and employees of these shops to concentrate on their auto repair and auto detailing work. This is a business where customers could themselves buy most of the products the business sells to them, but because they provide a valuable service that saves their customers time, money and keeps their shop running more efficiently, their customers have come to trust and rely on them year after year. The business has a long list of stable customers of many years’ standing.

The market opportunities for significant growth might be particularly attractive to a new owner who can handle management and new-account acquisition, while delegating all delivery activities to route sales staff as the business grows.

Listing Details

Down Payment: $100,000

Total Sales: $1,100,000

Cash Flow: $215,000

FFE: $50,000

Inventory: $50,000

Terms and Conditions?:

Inventory not included

Reason For Sale:

Seller is selling for family health reasons that will be completely explained to a buyer prospect.

Training & Support:

Seller will be available to train and assist new owner as needed. There is one other experienced account manager/driver.

Operation

Year Established: 2000

Days & Hours of Operation: M-F

Employees: 3

Location

Facilities Information:

Total Building Size: 3,000 sq. ft Warehouse facility
Lease Rate: $8.83 per sq. ft. per year
Lease Expiration Date: 10/31/2019

Modern warehouse facility currently leased. A new owner may renew the lease or move the business elsewhere.

Summary

Competition:

There are many local “competitors,” but few who actually provide the detailed and personal service that this company does. The barrier to entry is high. The big competitors are auto supply chains like NAPA Auto Parts. They offer deliveries, too, but not the small shop inventory services of a jobber.

Potential Growth:

The business has an 18-year history and is primed for fast future growth. A big potential new opportunity is for a new owner to add and manage account managers instead of being one. The current owner loves the interaction with his customers as an account manager/driver. Hiring and managing account manager/drivers would be a different approach.

 

Financing/Terms:

Anticipated Seller: $100,000 / 7% / 5 Years.

Anticipated Bank: $450,000 / 7% / 10 Years.

Down Payment: $100,000.

Working Capital Needed: $25,000

Inventory Purchase:Inventory of $50,000 included in price.