Cash Flow: $230,000
Choose Your Commute:
Muskegon – 35 min
Ludington – 32 min
Scottville – 33 min
Pentwater – 20 min
Silver Lake – 19 min
Whitehall – 20 min
New Era – 8 min
Hart – 9 min
This Michigan body shop for sale has been in continuous operation for more than 75 years, with the current owner / operator having successfully run the business for 35 years. Now at retirement age, the seller seeks to pass along the business to new hands. Van’s has built an excellent reputation across Oceana County for decades – something the buyer would benefit greatly from and can build on.
Located in small town, West Michigan, this opportunity is for someone looking for a lower cost of living and the benefits of quieter, small town or rural life. There are several great communities within commuting distance, including larger towns like Muskegon or Ludington.
Currently the business has 2 employees (one office manager and one repair technician) along with the full-time owner. This Michigan body shop for sale generates a consistent $600,000 in annual revenue, even during 2020 – COVID year! The full-time shop employee is compensated well, including health insurance, and will presumably retain employment under new ownership.
Along with the shop’s consistent revenue stream, the business produces SDE (seller’s discretionary earnings – the historical, normalized, cash flow available to pay an owner-operator and service debt) of $230,000 each year.
In the right hands the future of this business is bright. It comes with decades of established operation and thousands of satisfied customers. As expected, the business sale includes industry appropriate lifts, hoists, tools, spray booths, alignment equipment, software, paint, and more.
The seller seeks an asset sale in which he retains cash and receivables while retiring all liabilities. The buyer would receive all of the fixed assets, supplies, and goodwill of this business (including this website, which ranks well in Google).
With a combination of $395,000 listing prices (a very attractive 1.72x multiple of SDE) and a $40,000 seller note, this transaction would be embraced by SBA banks for a qualified buyer.
The deal looks great: $40,000 buyer cash, $40,000 seller note, and a $315,000 SBA term loan, annual projected debt service (seller note + SBA term loan) would be $46,000, leaving a whopping $184,000 of post debt service free cash flow for the buyer to pay himself, or quickly pay off the initial debt. Not a bad income for a $40,000 down payment.
This profitable small business is the perfect opportunity for someone skilled and experienced in collision repair who wants to become his own boss while enjoying the terrific West Michigan lakeshore and a quieter life. The seller will also be available for an ample transition period to help ensure the success of the new owner. He would relish the chance to be a sort of mentor, as the same kindness was done for him in his 20s – and he’s only 8 minutes down the road.