Edmonton, Alberta Automotive Equipment Repair Center

Edmonton, Alberta Automotive Equipment Repair Center Investment level: 675,000 Type of sale: Share Sale Pre-Approved Financing is in place ( OAC) It is time for our clients to retire and move onto the next thing in their lives. This 61-year-old B2B legacy business has been in operation with the current owners for over 17 years. The business offers buyers a variety of revenue streams, such as repair, servicing, parts sales, and warranty work for a long list of Canadian Commercial Retailers and Service Providers. Best Fit Buyers • Someone with strong automotive background • Someone with strong management experience. • As an add-on revenue stream to an existing repair business. By repairing automotive equipment which would end up in landfills this business helps to contribute to a greener environment. Along with the owners, this business’s long-term and experienced staff will be able to assist buyers throughout the entire transition of this business. Business at a glance Years of operation: 61 years. Current ownership: 17 years Owner Responsibilities: General Manager. Training of new staff.. Overseas the day to day. Hours worked per week approx. 45. Key Strengths History and reputation; diversified services; strong and loyal customer base; long term staff. Lease: Expires November 2025 Option to renew available. Staff: Fulltime: 4 Part Time :1 Hours of operation: Mon-Fri- 8:00 –4:30 pm Sales: 2021 (677,000) 2022 (737,000) 2023 (733,000) Normalized Seller’s Discretionary Earnings 3 Year Average: 193,000 Business loan calculator for the Cash Flowing Part of the business When it comes to financing a unsecured (no property involved) business loan, generally, financial lenders use a 5-7 year repayment period, with buyers investing 30-35% of their own money. Lenders will also require buyers to have additional funds for start-up costs such as inventory, staff salaries, insurances etc. A six year pay back with a 30% down payment by the buyer has been used for this scenario*** Common sense is the rule of thumb here. The cash flow from the business should cover the debt service and afford the buyer a good income. Scenario 1 Cash Flow of the Business Numbers have been Rounded off. Price of business : 675,000 Down payment: 203,000 Amount financed: 472,000 Term: 72 months Interest rate: 9% Monthly payment: 8,500 Annual payment: 102,000 3-year average of owner’s SDE: 193,000 Minus annual debt service: 102,000 Buyer SDE left over after debt service: 91,000 **A 9 percent interest rate has been used for illustration purposes. Buyers may be able to find lower interest rates. *** A 6-year unsecured loan payback scenario has been used for illustration purposes. Some lenders are now offering longer 8- & 10-year payback terms which would lower the monthly loan payback. A Virtual Discover call with the owner will be available, once a buyer’s profile has been completed. Thank you for your interest in this business opportunity