HillCo 4×4

HillCo 4×4 Repair & Service

Price: $595,000

Normalized Cash Flow: $240,000

What they do – the short version

  • Source clientsHillCo For Sale looking for vehicle expertise in the
    area of 4×4 repair, maintenance, parts and associated accessories.
  • Licensed technicians diagnose the required or requested repairs / parts / accessories within the timeline needed.
  • Source parts and accessories for the best possible price and estimate costs.
  • Get customer approval to proceed.
  • Licensed technicians bring the vehicle up to the promised performance specs.
  • Customer provides payment and picks up the vehicle.
  • No vehicles released without payment
  • Listen to customers to maintain and improve knowledge base.

Summary

HillCo Off-Road is a dream business serving mostly recreational 4×4 off-road enthusiasts. They have five years of providing their specialized repair services and sourcing accessories. This will be a share sale. There is a full equipment list and three years financials available to qualified buyers.

HillCo is now a business of the moment. The current local economy leads to more ‘repair’ than ‘replacement’.

Operations

The firm operates in the SE industria off a main road with easy access to public transit. Their well-signed shop is approximately 2500 square feet and has good customer parking.

HillCo gains a commercial advantage through their location. A lot of drive-by traffic and busy destination points across the parking lot. They are close to the parts suppliers and dealerships so waiting on parts in minimized.

There is no current lease. A new lease between the buyer and the landlord will an acceptable condition of sale.

HillCo can get as much as 85% of their parts from their main supplier. Aftermarket accessories come from many different sources.

They keep minimal supplies on hand since most items are usually available from five minutes to two hours via couriers or a supplier’s own drivers. Speciality items can take one to three weeks and some custom built items or back ordered items have taken up to two months. Delays are almost always known in advance to avoid customer surprises.

They also pick-up of some US sourced items directly at the border.

The firm operates with an active owner, a journeyman mechanic who has been there for three years and an apprentice who has been there for around a year and half.

There has been very little staff turn-over.

The journeyman mechanic can run the business in the absence of the owner.

The seller estimates the firm’s operations require around 6500 man hours a year and that business could increase without the need for new staff.

HillCo is busiest in the spring and summer while January and February are a slow period.

Most of their equipment is new in the last three years. Some of the equipment still has warranty.

They use a professional maintenance firm to keep their equipment in good working order.

Business could grow improve without new equipment. But the seller adds that a new owner might consider the purchase of an additional hoist.

They have all the needed safety equipment in place and in good order. They also have all the proper disposal procedures on site for their hazardous materials.

There has never been a WCB claim filed.

The firm currently does their own bookkeeping using Quickbooks rather than contracting it out.

Customer Base

 HillCo uses newspaper ads and internet to attract new customers. Their internet presence consists of their own web site, Kijiji, and a Facebook page. They have many excellent reviews online.

Service customers are exposed to their accessories when picking up or dropping off their vehicles.

Accessories are picked up in the store or shipped across Canada. Installs are done in the service bays.

Customers are also exposed to new ideas and products.

Most of their customers come from repeat business, referrals and word of mouth. HillCo has a significant customer base that continues to bring back vehicles for new repairs and accessories.

Their top customers change year to year since these are the enthusiasts doing big custom builds

Further Information

Three years of financial statements and a complete equipment list is available for qualified buyers.

 Management Discussion

Q.  Why are you selling?

A. Family. We have kids. I would like to spend more time with them. We are looking at moving away from the city.

Q.  In your words, what does the firm do?

A. General automotive repairs, custom projects and parts sales

Q.  What functions does the owner perform? What talents will the new owner have to replace

A. I am currently doing reception and filling in as a mechanic when we’re very busy.  Either position could be filled by more staff.

Q.  How long will you stay after the sale to help in the transition?

A. 6 months to a year or more. I am flexible on this.

Q.   Have the accounts receivable been purged of bad debts?

A. We do not release a vehicle without it being paid in full.

Q.  Will you agree to a non-competition clause?

A. Yes

Q.  Who should by this business?

A. Someone who is hands on. Passionate about the automotive industry (4x4s in particular). Being a journeyman would be an asset but not 100% needed.

Q.  Where do think the business has a competitive advantage?

A. We offer a diverse range of services from the general repairs to custom installs. Plus:

  • We have a great location
  • A solid reputation for our excellent work
  • We are active with the Calgary Off Road clubs

Interested? Next steps:

1. Fax / scan the non-disclosure document 
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal

NOTICE

The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.

David Page | An Alberta Business Broker

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