Normalized Cash Flow: $270,000
What they do – the short version
- Source customers needing parts for automotive, agricultural, and industrial maintenance and repairs
- Maintain relationships with main supplier and other specialty sources.
- Maintain relationships with repair firms.
- Four experienced parts
- men on staff to identify needed items then source.
- No parts released without payment or charged to active account.
- Customer feedback provided to firm about service, and timing.
- Continuous improvement with ideas implemented based on customer feedback
DoneCo is a one stop auto parts store serving one of Calgary’s surrounding communities for over thirty years. This will be a share sale. There are three years of complete financials available for qualified buyers plus an up to date equipment list.
DoneCo has one major supplier (Question, will they have to approve your buyer?) They also sell RV parts and related items.
They are located on their community’s main commercial street with good drive-by traffic and easy access to parking.
Their well signed building is about 6000 square feet in size. This location gives them a competitive advantage. (Note that the building may also be for sale in a separate transaction.)
The seller believes about 90 percent of their product comes from their top five suppliers. Most of it arrives by same-day courier as needed.
Inventory (extra) runs in the neighbourhood of half a million dollars.
Their staff count is around six with four being experienced parts men. The seller believes that business could increase without the need to hire more staff.
The business can be seasonal but not to the point of ‘slow times’. Busiest periods are at different times of the year – spring / fall, cold winters etc.
The owners do their own day to day administration with the help of a bookkeeper.
Customers come in to their store or order parts over the phone. The seller’s use many different advertising outlets from the local paper to the yellow pages plus radio. They estimate that 80 percent are regular and about 20 percent are new. They also estimate that their top five customers account for between 25 to 40% of their turn over.
Three years of financial statements and a complete equipment list is available for qualified buyers.
Q Why you are selling?
A. We are ready to retire.
Q In your words, what does the firm do?
A. We provide advice as well as products and service.
Q What functions does the owner perform? What talents will the new owner have to replace when you leave?
A. The owners do customer relations, pricing, computer work, payables, receivables, and supplier contacts.
Q How long will you stay after the sale to help in the transition?
Q Will you agree to a non-competition clause?
A. Yes / negotiable
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
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.