Driveline Sales - Service - Parts and New

BUSINESSACTIVITY: The Company offers driveshaft repair and fabrication services for all types of vehicles, equipment, machinery, and other applications utilizing universal joint type driveshaft.  The Company has several different balancers that allows the technician to solve vibration issues on a wide variety of different types of driveshafts.

HISTORY:  The Company had been in existence since 1976 started by two brothers.  The brothers worked side by side for years with other family members working in the business overtime.  When the one brother died his son entered the business to help operate it.  

The family decided to sell the business to secure a retirement income for the wife.  Part of the transaction was that the new owner would employ the uncle.  The uncle stayed with the Company until he was diagnosed with cancer and had to leave to take care of himself.

The Owner started looking for an employee to replace the uncle.  No industry experience was necessary, in fact, it was almost better to train a new hire that could be molded to the Owners process.

He was looking for an employee with a mechanical aptitude, who was willing to work and could read a tape measure and caliber. Pretty simple employment qualifications.

Since purchasing the Company, the Owner has been able to train several technicians.  One of the Company’s current technicians is assisting the Owner in training new employees.  The difficulty in hiring employees is finding an employee who wants to work, training is simple.  As the Owner states “our work is like doing dishes – wash and repeat.”

Today the Company is busier than ever and needs to hire additional technician just to keep up with the organic growth.  The Owner is proud of what he has built.  The foundation has been laid for a new owner to build upon.  With a strong industry outlook and a service industry that is virtually recession proof, the Company is poised for strong growth.  

SALES AND SELLER’S DISCRETIONARY CASH FLOW:

‍MARKETINGSTRATEGY:  The Company does not have a marketing strategy in place. They have grown solely by word-of-mouth, repeat customers and their website.   The outlook in the industry is strong.  A new Owner with more energy could increase the work force and expand marketing and hire a salesperson to grow the business.  

FURNITURE,FIXTURES, VEHICLES & EQUIPMENT:  Included in the purchase price is Inventory of approximately $45,000, Office Furniture and Computers, $5,000 and Shop FFE of $45,000.  The FF&E has been re-casted to reflect an estimate to replace the assets with the same or similar assets in the used marketplace.

DAYSAND HOURS:  Monday through Friday hours are 8:00 am to 4:00 pm.

EMPLOYEES:  The Company employees 2 technicians that have tenure and are trained to build or repair any drive line.

FACILITIES:  The business is in a Class B free-standing building with leased space totaling approximately 3,200 square feet. The office is approximately 200 square feet with 1,000 square feet of front counter and parts space and shop space on 2,000 square feet of shop space warehouse space.   The lease is for $4,500.00 per month plus NNN.  The Owner is the landlord and will write a new lease with acceptable SBA terms.

REASONFOR SALE:  The Owner is ready for retirement.  He has a home in Eugene and one in Arizona.  He would like to enjoy retirement traveling between homes and spending time with family and friends.  

TERMS:  The asking price is $465,000.  This is an SBA transaction with Buyer’s cash infusion of $46,500 and Commercial lending of $418,500 plus SBA fees. The term of the SBA loan is for 10 years atan interest rate of 6.25% with payments of approximately $4.699.00 per month.

INITIAL INVESTMENT:  The buyer will need to have approximately $106,500.00for the following acquisition cost:

·       $46,500.00      Down Payment for Acquisition

·       $10,000.00      Estimated Expense for Bank Fees, Attorney Fees, and Closing Cost.

·       $50,000.00      Working Capital (As part of the bank financing a credit line maybe granted

Directions: Contact Bill Billingsley for more information at (503) 233-8600, Extension 1 or e-mail billb@thecbbgroup.com.

No additional information will be released until the buyer has been pre-qualified by the Broker.

NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN

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