Business for Sale, Would I Buy It? | Auto Repair Shop

In this version of “Would I Buy This”, we’ve got an auto repair shop in Paradise, which is Maui, Hawaii, if they’re being specific. So it’s an auto repair place. The asking price is 525,000, gross revenue is just over a million [1,070,120], and cash flow is 285,000. So just at first pass, I mean, I know there’s a ton of cars in Maui, rental cars and regular cars. So I’m sure you need qualified mechanics. I would imagine that it could be a bit hard aside from being the owner to find qualified mechanics to work at the shop. And I think, I haven’t looked lately, but 285 on just over a million in revenue sounds a little bit low for cash flow for a mechanic shop. Now maybe in Hawaii, everything’s more expensive, maybe parts are more expensive and you can’t mark it up as much. That could be a problem. It says established in 1952. So clearly it’s been around a long time, is probably well-known, and probably does a lot of business with locals. I’d say if you’ve got the skills to be a mechanic, this might be a good option if you’re looking for a way to move to Hawaii. Making 285K a year. After you buy it and have debt service, you may be making 185 if you can grow it, but that’s not actually a ton of money to go and live in Maui. If you’re already in Maui and you’re a mechanic, this might be a good deal for you. Outside of that, not sure it’s something that’s going to get people excited enough to want to get in the business and move to Maui. And if you did, might have to be prepared to get by on maybe a little less than you’re used to there. So very specific business, very specific location. So from the seller’s standpoint, it makes it hard because there’s not going to be a lot of people who are going to be able to buy this thing. Which is probably why the price isn’t that high. I would guess if this was a stateside continental U.S. business, everything else being equal, it would probably net a little bit more and probably be selling for more like 600 or 700K. So pros and cons to being in a unique location like this. Cool to go, you know, live in Maui if that’s your goal. But actually, once you live there, you may find it’s not all it was cracked up to be.

More about this series, CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses up for sale and see if Matt would be interested in buying them.