Listing Details:

• Business Category:              Automotive
• Price:                                      $1,600,000                     
• Gross Revenue:                               $1,849,891
• SDE:                                                       $331,972
• Seller Financing:                   $160,000
  
• Location:                                 Central Iowa
• FF&E:                                     $300,000
• Support & Training:               12 Weeks
• Non Compete:                        500 Miles for 10 Years
• Reason For Selling:               Retirement

Buyer Highlights

• Established Business with Consistent Performance: A long operating history, a loyal regional customer base, limited direct competition, and steady demand for specialized services.

• Business and Real Estate Offered Together: The sale includes the operating business, specialized testing equipment, parts inventory, established customer and supplier relationships, and the real estate.

• Several Opportunities for Continued Growth: The undeveloped land behind the building may provide room for future building expansion. Other opportunities include expanding common rail work, increasing the company’s online presence, and reaching more dealerships, repair shops, fleets, and equipment owners.

Business Description

This long-established Central Iowa business tests, rebuilds, and repairs diesel fuel system components, including injection pumps, injectors, and turbochargers. Its customers include farmers, repair shops, commercial businesses, and industrial companies that need dependable service when their equipment is down. The business comes with specialized testing equipment, a large parts inventory, established suppliers, and many repeat customers.

The business and real estate are being offered together, giving a buyer the operation, the property, and room to expand.

Business History

The business has served its market for several decades. The current owners have continued to build a strong reputation by doing good work and taking care of their customers. The owners are ready to retire.

Growth Potential

The owners have more work available than they have people to complete it. A buyer could grow by hiring and training additional technicians, expanding the building onto the undeveloped land behind the property, taking on more work involving electronic and common rail systems, and reaching out to dealerships, repair shops, fleets, and equipment owners. Most of the company’s business has come from referrals and traditional farm publications. Its online marketing is limited and could be improved.

Competitive Position

There are not many shops left that do this type of specialized work. A competitor cannot simply open its doors and start rebuilding diesel fuel systems. It takes experienced people, specialized test equipment, supplier relationships, and the right parts. Other independent shops have closed, retired, or been purchased, and customers now travel from throughout Iowa and surrounding states to have this work completed.

Buyer Profile

The best buyer may be an experienced working owner, an existing diesel or equipment repair company that wants another location, or a larger company that can bring in the technical people needed to grow. The buyer’s experience, staffing plan and transition plan will matter.