Priced Below the Market! Busy Wheel & Tire Service & Retail Location

Denver, CO (Adams County)

Seller Financing Available
Priced Below the Market! Busy Wheel & Tire Service & Retail Location
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Asking Price: $260,000

Cash Flow: $181,000

Gross Revenue: $710,000

EBITDA: $181,000

FF&E: $75,000

Inventory: $35,000*

Rent: $3,000 /Month

Established: 2010

*not included in asking price.

Priced Below the Market! Busy Wheel & Tire Service & Retail Location

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Business Description

Priced to Sell, 793K Rev, 168K Net, SP only 260K, Sells mostly Used Tires, 21% N

Fire Sale! The Sales Price has been set below the market because owner has to sell quickly for family reasons. This business has upside potential in both earnings and has equity building through growing the current location and by adding additional locations. This is a very simple business with a model that has a very high profit margin with consistent demand.

For Sale:

TIRE AND WHEEL RETAIL AND SERVICE LOCATION
South Denver Colorado on a Major Street with Heavy Traffic

The 2018 earnings were 181K on 710K In revenues. 2019 is trending higher than 2018 in both revenues and earnings. This company is priced at 260K which is priced UNDER 1 ½ times the 181K in earnings. Owner believes the current location is capable of doing at least 1.5M in revenue which is over 1.6 times the current revenues.

They sell both new and used tires at a discount. Most of their sales are pre-owned, quality used tires (80% of tire sales) which saves their customers up to 70% of the cost of a new tire. Used tire sales is the primary revenue stream for the business with 3x’s the gross margin of new tire sales. They have developed strong relationships with some of the largest used tire vendors (vendors who go out and find the quality used tires and sell them to used tire shops) in the Denver area. They also sell custom wheels, offers fleet pricing, has financing programs available, and provides customers with the strongest warranty in the Greater Denver Area. Services that they offer include tire mounting and balancing, wheel balancing, TPMS diagnostics, tire rotation, tire repair, and tire disposal.

They use a POS system that is easy to use/understand, provides a simple way to create/track/receive inventory, and provides them with a competitive edge over its competition.

Their online reputation is stellar a 4.8 rating (out of 5) on Google with close to 600 reviews, a 5.0 rating (out of 5) on Yelp, and an A+ rating with the BBB. Currently the business only advertises online, investing between 2-2.5K dollars per month to drive new business and ensure it keeps the dominant position on Google.

The sales price is 260K with the owner willing to carry 15% of the purchase price. This may qualify for a bank loan but it has been priced to sell quicker than banks typically take to fund a purchase. They are an S Corp.

Details

Store hours are Monday to Friday 9AM to 6PM, Saturdays 9AM to 4PM and Sundays from 10AM – 4PM. Lightspeed Retail Systems software is used for POS system and QuickBooks for financials through their CPA. They have 5 full-time employees, all well-trained and seasoned workers whom he says will stay post-closing.

Used tires can start as low as $25/tire with sizes ranging from 13” to 22”. The Customer Satisfaction Guarantee is offered to provide peace-of-mind to customers who may not have purchased used tires before. If there is any issue(s) with a tire they sell, they will repair or replace or refund the cost of the tire within 30 days of the purchase. There is no other tire store in Colorado that provides that kind of guarantee.

The employees work hard, loyal, and has a management team that truly conveys a “sense of ownership” for the business. Since late 2017, they have enjoyed low employee turnover and current employees are all well-trained and seasoned. The employees are paid two times a month on the 1st and 15th. Management and lead tech were offered an hourly rate with a possibility of overtime OR to work on salary. The store manager is a five year employee who is familiar with all aspects of day-to-day business operations and is perfectly capable, with the right supporting staff, of running business should the new owner(s) prefer a more “hands-off” approach to the day to day operations. He decided that hourly versus salary was best for him, he is paid 18.50 per hour. The assistant store manager is a 3 year employee, has excellent sales skills, is bi-lingual, can run both front of the store(sales), and back of the store working in bay. If a second location is opened in the next few years, he may be the perfect choice to step in and open/run that location seamlessly. He opted for salary versus hourly, his take home check is 1,525 twice/month. The lead tire technician is a 2-year employee and a 30-year veteran in the Tire and Wheel industry here in Denver, he has probably trained a third of all of the tire technicians in Denver. An excellent employee who has never called in sick or missed a day of work these last 2 years. Strong work ethic and excellent attitude, exceptional employee. Also is salaried employee with take home pay of approximately 1,550 twice/month. The two tire technicians both joined and are both hourly at 15 per hour.

Lease and building info: 5-year lease with monthly rent comprised of base amount plus percentage of property and tax insurance. There are two scheduled base increases at month 13 and month 37 as well as two scheduled increases in percentage of property tax and tax insurance year 2 and year 4 of lease. Currently the monthly rent is just under 3,000 per month. Tenant pays for water, trash, electricity and any other related use. A security deposit of 3,000 was required at signing. Owner has been in constant contact with landlord regarding potential sale and has been assured that new lease with new owner wont be an issue. Building is approximately 1,313 square feet. The Use of Premises for this building is for a tire Shop or automotive related business.

Reason for selling: The owner is selling because spouse has accepted new job in North Denver which requires family to move before the end of 2019. They have decided that rather than long commute, the funds from their home sale will allow him to attend graduate school as full time student. He will sign a non-compete.

Thank you for your consideration,

Jeff Chapman Eisnaugle
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jce@companybroker.com

This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you have received this e-mail message in error, please reply to the sender and delete it from your computer.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Detailed Information

Location:
Denver, CO
Inventory:
Not included in asking price
Real Estate:
Leased
Building SF:
1,313
Lease Expiration:
N/A
Employees:
5
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Lease and building info: 5-year lease with monthly rent comprised of base amount plus percentage of property and tax insurance. There are two scheduled base increases at month 13 and month 37 as well as two scheduled increases in percentage of property tax and tax insurance year 2 and year 4 of lease. Currently the monthly rent is just under 3,000 per month. Tenant pays for water, trash, electricity and any other related use. A security deposit of 3,000 was required at signing. Owner has been in constant contact with landlord regarding potential sale and has been assured that new lease with new owner wont be an issue. Building is approximately 1,313 square feet. The Use of Premises for this building is for a tire Shop or automotive related business.
Competition:
They sell both new and used tires at a discount. Most of their sales are pre-owned, quality used tires (80% of tire sales) which saves their customers up to 70% of the cost of a new tire. Used tire sales is the primary revenue stream for the business with 3x’s the gross margin of new tire sales. They have developed strong relationships with some of the largest used tire vendors (vendors who go out and find the quality used tires and sell them to used tire shops) in the Denver area. They also sell custom wheels, offers fleet pricing, has financing programs available, and provides customers with the strongest warranty in the Greater Denver Area. Services that they offer include tire mounting and balancing, wheel balancing, TPMS diagnostics, tire rotation, tire repair, and tire disposal.
Growth & Expansion:
This business has upside potential in both earnings and has equity building through growing the current location and by adding additional locations.
Financing:
15%
Support & Training:
The owner will stay and transition for two months.
Reason for Selling:
The owners spouse accepted a new job and they are moving.
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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