Broker Name:Ronald Cervelli
Broker Email:contactus@regalconsultants.com
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Auto Salvage Business
(Automotive )
Essex County , NJ
Listing ID: AUTO264

Listing DetailsGross Revenue: $ 1,263,767
Cash Flow: $ 135,604
FFE: $ 375,000 (Included in Price)
Reason for Sale:

The sale is due to partnership separation and owner’s retirement.


Training & Support:

The owner will remain post-closing and is prepared to supply an appropriate transitional period to the new owner / operator.


OperationsYear Established: 2013
Non-owner Payroll: $ 25,000
Employees: 11
Absentee Owner: No
LocationLease Expire: 0000-00-00
Lease Security: 20000
Monthly Rent: $ 10,000
Square Footage: 2000
Facilities:


The business is conveniently located in Northern New Jersey Essex County off US Highway 1 & 9. The area consists of a large metropolitan city with a substantial demand for this product and service. The site consists of eighteen thousand square feet, a fully operational 2,000 sq. ft. office and 60,000 square foot of storage and a three-bay garage.


SummaryBusiness Description:
Profitable auto salvage business located in Northern New Jersey, Essex County. This wonderful auto service always produces a substantial net income to the owner operator due to the high mark up and low cost of goods. A salvage yard, or lot, is used to store auto parts and scrap metal to be sold as individual parts or in bulk at a substantial mark up. The resalable of auto parts and vehicles is a national retail operation representing billions of dollars yearly sales. The company is located on a highly active county road and conveniently off US Route 1 & 9. The business location has been fully upgraded with a clean professional image. The storage areas consist of approximately ten thousand square feet with a capacity for 200 plus vehicles, with a two thousand square foot office, three bay garage and thousands of square feet of storage area. The owner is prepared to evidence 2018 gross sales of $1,263,767 and a consistent net yearly net income. They also specialize in wrecked luxury and exotic vehicles as well as damaged hybrids and foreign cars. Their experienced staff also functions in bulk purchasing of salvaged cars from thousands of insurance companies and banks. Their inventory comes in varying conditions including; theft recoveries, collision damage, flood damage and bank repo's. They can ship the salvaged vehicles exporting the inventory from nearby New Jersey ports. Viewing their inventory is available on line and always posted for sale. The sale includes a long lease with a modest monthly rent cost. The business opportunity has eleven employees who are unaware of the pending sale and fully expected to remain post-closing, monthly payroll is approximately $25,000. This business opportunity includes an assignable commercial lease which expires 11/30/2023, plus additional options, with a monthly rent of $10,000 cost per square foot is approximately $8.25 and rent security $20,000.The business has been valued based on a multiple of the net yearly income which includes the business assets, inventory, and valuable licenses, some seller financing may be available to a qualified buyer with an appropriate down payment, collateral and credit rating. Please do not disturb business, this sale is absolutely confidential, the employees are Unaware of the pending sale, all viewings are by appointment only and photo may not represent this particular business.

 


Competition:


Due to the valuable and unavailable auto scrap license, no other new competitors are likely, to the best of our knowledge no other new competitors are expected near to this business and the owner has agreed to supply a long term non-compete agreement to the purchaser.


Potential Growth:

The business presently has a limited online operation & marketing budget / plan which if improved can further develop the business bottom line income.


Financing/Terms:

Seller financing is available to a qualified buyer