Business Summary:
Location: SurreyAsking price: £400,000Business highlights include:Turnover of c. £601,000 per annum (2022 accounts)Adjusted Net Assets c. £224,959 (2022 accounts)Gross profit c. £290,000 (2022 accounts)Adjusted EBITDA c. £160,000 before drawings (2022 accounts)More than 38 years historic tradingFully equipped and modern workshopExcellent repeat customer baseWell fitted ATL MOT bay Classes 4, 5* and 7Knowledgeable, experienced and motivated staff All tools of the trade included in the saleAmple ParkingProminently situated siteGoodwillBusiness ProfileThis well known and successful business, set up over 38 years ago, provides a comprehensive workshop service for motor vehicles/cars and light commerical vehicles and within the busy Surrey and South East region and has been in the current vendor’s ownership since its founding. The business has built up a sterling reputation in the area during this time and provides full repair, servicing, maintenance, and MOT testing services to the local community and beyond with some customers returning regularly from as far afield as Wales, Cornwall and Essex. Most services for Passenger Cars and Light Commercial Vehicles are provided within the company and very little is referred out, this is inclusive of MOT Testing (Classes 4, 5* and 7), Servicing, Electrical and Mechanical repairs. The business has a particular reputation among its peers for diagnosing complex faults, this is split between those that arise from direct customer vehicles and those that have been referred by other garages in the area. The focus of activities in the business are evidence based and so technicians are required to submit a tangible diagnostic result to justify customer recommendations for repair, this has the added benefit of defusing potential disputes that can sometimes arise much later. There is a history in the company of investing in the best equipment available such as Hunter Wheel Alignment, Beissbarth Tyre Equipment and Rotary Lifting Equipment. Over the years the business has developed two specialisms; Diesel Particulate System fault Resolution, which has been a specific problem for all garages to solve and this business’ equipment and expertise solves that problem and has lead to a further reputation in this very technical area. This has been developed into a service brand offering of its own and is growing annually. The business is also a Ford Motor Vehicle Specialist and over many decades has learned the nuances of the brand’s vehicles and benefits from investing in Genuine Diagnostic Equipment (Ford VCM3, IDS and FDRS) including access to workshop manuals, labour times and wiring diagrams etc.The business also maintains excellent relationships with all the most important fuel injection manufacturers enabling it to meet every customer’s service needs or parts requirements.This profitable business has established itself as a market leader in the region with an enviable reputation for quality and service; it is fully equipped for purpose, and plant includes:1x Hymaxx 4 Post 5.5 Ton Lift (MOT) (2014)1x Rotary Two Post Hydraulic Baseless 5.5 Ton Lift (2018)1x Rotary Two Post Hydraulic Baseless 3.5 Ton Lift (2022)1x Hunter RX45 Scissor Lift (Wheel Geometry) (2020)1x Bosch Gas Analyser (Petrol and Diesel)1x Rolling Brake Tester2x 43” Monitors for Rolling Brake Tester 1x 21” Monitor for Rolling Brake Tester1x Headlamp Alignment Tester1x Hunter Elite TD Wheel Geometry System 1x Computer 1x 24” Monitor 1x Weight Set1x Beissbarth Wheel Balancer (MT Zero 8) (2021)1x Beissbarth Tyre Machine (MS 670 S) (2021)1x R1234yf A/C Machine1x Hydrovane Compressor1x Air Receiver1x Nuova DPF Cleaning Machine (2018)1x 20 Ton Press3x Transmission Jacks1x Hydraulic Lifting Table (0.5 Ton)2x Sealey Pneumatic JacksStaff are fully conversant with the latest workshop techniques and engine management systems and the business is compliant with all necessary health and safety regulations and codes of practice.Location is ideal being close to major road networks and busy towns and also has ample parking so customers can leave their cars and pick up at a convenient time later in the day if need be.Equipment:The garage has a comprehensive range of plant and equipment as you would expect from a very well-established workshop. All plant and equipment is included within the sales price.Customer Service:The business offers an excellent standard of service and is proud of their attention to customer care offering professional advice and high quality workmanship. This is evident in the very high levels of repeat business the garage enjoys and the fact it does not need to advertise.This business is a member of the Motor Ombudsman (Previously Motor Codes), Trading Standards and an Approved RAC Garage (with territory).Key Strengths: The business has many strengths including • Enviable reputation in the region it serves• Large customer base• Exceptional levels of service• Repeat business levels and referrals• Significant investment in infrastructure• Highly skilled workforce • Profitability• LocationGrowth and Expansion: The business has enjoyed steady trade over many years and this is expected to continue in light of its growing and loyal customer base. The site has room for expansion if need be and this could easily be achieved if a new owner wished to employ further personnel as the demand is already there.The business is well positioned at this time to develop further its diesel particulate specialism and larger vehicle commercial business.The business does very little advertising and could certainly expand this activity with a more proactive approach. The business is ready & prepared to take maximum advantage of this growth as it occurs as it has the necessary infrastructure in place.Employees:The vendors work within the business and manage admin and finance. The business also employs:1x Technician 1x MOT Tester/Technician 1x Service Manager 2x vendorsStaff are highly experienced and a real asset to the businessAdvertising and Marketing: The business has never felt the need to advertise bearing testimony to the fact that it enjoys exceptionally high levels of repeat business from a large and loyal customer base.There is however, a comprehensive and attractive website detailing the services and facilities offered.Premises:Premises are a real strength of this business. Ideally located on a modern, discrete and busy industrial estate that is close to highly populate South East towns with ready access to main trunk roads including the M25 and on to major South East towns & cities in the Surrey, Berkshire, Hampshire & Sussex areas, the business is very well known and accessible.The premises comprises 2,200 square feet, ground floor Portal Frame Building, laid with polished concrete floor throughout lit by 9 Low Bay LED Lamps. Heated by Waste Oil Burner and assisted by 4 overhead fans which are also used for cooling during summer. Within the ground floor is a reception area that is laid with ceramic tile. There are two toilets (one for staff, one for clients) and a storage area for tyres and other consumables, the DPF Refresh room can also be found hear that houses the equipment for this operation. There is a separate office for all administrative functions laid with ceramic tile, currently arranged for 4 desks, however there is capacity for 6 desks if required. Outside there is a concrete forecourt which allows for parking of 10 vehicles, there is further parking on the estate for other client and staff vehicles.The premises are freehold and owned by the business, it is the intention to remove the freehold from the company prior to sale and the vendors are happy to offer a new lease to the successful buyer, subject to negotiation.In keeping with the neighbouring unit we would expect rent to be circa £40k PA Rateable Value £21500 Rates Due after Multiplier £10728.50 Rates Due after Retail Discount £5364.25 Business Hours:Monday – Friday: 08:30-18:00Saturday and Sunday: ClosedFinancial Information: The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. From the 2022 accounts:Turnover of £601,348 per annum (2022 accounts)Adjusted Net Assets £224,959 (2022 accounts)Gross profit of £288,832 (2022 accounts)Adjusted EBITDA c. £160,000 before drawings (2020 accounts)The business generates reliable profits. The vendor has invested in the infrastructure of the business over the years and it has a highly impressive level of plant and equipment that is included within the sales price.Reason for Sale:The vendors now wish to move on to other business interests and challenges and the feel that the time is right to hand the business to a new owner with the means and the enthusiasm to see it achieve its potential.Support and Training:The current owner would be happy to provide full training and support at handover. Asking Price:The Asking Price of £400,000 plus net assets is for 100% of the issued capital of the company, assuming Net Assets of circa £224,959 on completion (calculated on a zero cash-zero debt basis). The final selling price will have a £1 for £1 adjustment for any rise or fall in this benchmark Net Asset figure at completion.
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