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Porsche Parts Reseller and Recycler - dC Automotive
NCListing DetailsOffice ID: AUTO9
Status: Active
Listing Broker: Jeff Snell, M&AMI, CBI, ABI
Listing Price: $4,850,000
Gross Revenue: $1,609,102
Cash Flow: $491,245
12 Month Forecast: $1,750,000
Forecasted Cash Flow: $500,000
Inventory: $9,000,000
Inventory Included: Yes
FF&E: $100,000
FF&E Included: Yes
Acreage: 6
Real Estate Included: No
Sales Structure: Asset Sale
Seller Financing: Yes
Financing/Terms:
Seller will participated in SBA mandated financing.
Reason for Sale:
Owner has been in the business for 25 years and is wanting to focus on sales and customer service. Will negotiate consulting agreement at $100,000 annually plus incentives.
Training:
Seller will provide up to 30 days of transition assistance plus up to one years paid consulting.
OperationsYear Established: 1990
Form of Ownership: LLC
Employees (full-time): 6
Employees (part-time): 1
Managers: 1
Business Hours: 9am-8pm EST M-F
Summary
Business Description:
This business specializes in the sale of recycled, new and rebuilt parts exclusively for Porsche automobiles model years 1965-2009. The business keeps approximately 400 cars on hand at any given time and is the largest Porsche parts recycler in North America. This business has exclusive North American distribution rights to a European manufacturer or new replacement Porsche parts. The business also sells "project cars" which are complete vehicles ready for restoration. The inventory management system is stored in the cloud with real-time inventory and pricing accessible anywhere there is an internet connection. The asking price includes $100,000 of furniture, fixtures and equipment as well as $2,850,000 of inventory at owner’s low estimate. The asking price DOES NOT include the land or buildings estimated to be valued at $1,000,000 which will be sold at actual appraised value. Check out this video: http://www.wral.com/news/local/video/15742921/
Historical Summary:
The business was started 25 years ago by the current owner. It has been relocated twice and has been in the current location for 12 years. The business included a very successful service business that could be brought back.
Owner Qualifications:
Management skills, organizational, familiarity with basic accounting functions. Prior automotive experience a plus, but not required.
Competition:
Being the largest Porsche parts recycler in North America provides a competitive advantage in inventory level and brand recognition. The closest competitor by size in located in California and is approximately 1/10th the size focusing on a different market segment primarily late model car parts. Salvage yards usually pay pennies on the dollar for their inventory, and as a result must sell large volume. This business is boutique in nature and is not exposed to the same risk factors such as sensitivity to commodity metals pricing.
Potential Growth:
The current inventory system does not support the grading of parts inventory. Adding this functionality would assist in sales and profitability. The current order entry system is not automated with inventory management. While the manual process is simple and quick an automated system would streamline the process and minimize keying errors. Shipping is a significant expense, the costs of which are not audited. It is not known if shipping is a profit or loss center - it SHOULD be a profit center, as most customers are desperate for parts. Advertising also is a significant expense, ads are stale and are not managed well, putting all the advertising with a firm to manage both the print and online would likely yield better results at the same or lower cost. Core sales, in this industry the parts that are un-sellable still have value, there are core buyers nationwide who clamor for parts for expensive cars, this business keeps all cores on site as well. Scrap sales, like the core sales, unusable material can be sold to recycling centers, there is one less than one mile from this business. The business is eligible for recycling property tax credits which have not yet been granted. Expanding sales to insurance companies and expanding retail sales online would increase gross sales and margins. Reintroducing the service department would add gross sales and add service revenue. The Maserati catalog is finished and ready to be put online. Model years 2000-2008 M138 coupe and spyder. Currently the company does not broker parts inventoried by other wholesalers. Part location and brokering services could generate additional revenue. Unlike most businesses the value of the inventory increases over time. This is a result of supply and demand coupled with the collector/enthusiast market. Additionally, as the value of classic and vintage cars increases the parts to restore and maintain them does as well. Inventory also rises during periods of economic downturn as investors reallocate assets from market investments like stocks to hard assets like collector cars they can enjoy that historically have fared well in all economic cycles.
LocationType of Location: Warehouse
Monthly Rent: $12,000
Square Footage: 140000
Facilities:
The 140,000 square feet indoor warehouse is fully insulated and lit with energy free sky lights. With room for 400 vehicles plus one mile of shelving the inventory is well organized. The building is extremely secure with no ground level windows. The entire facility is covered by a modern video surveillance system which can be remotely monitored from anywhere in the world with an internet connection. The building has a dry sprinkler system with current inspections certificates. There is an additional outside gated lot that can hold an additional ~70 vehicles. The land and building is owned by the business owner and is available for purchase. Real Estate will be sold at actual appraised value. Approximated appraised value is $1,000,000.
Last Updated: Aug 27, 2016 / 3:02 PM
Financial Information Current as of: Aug 22, 2015 / 2:19 PM
Lender Pre-Approved!
Diamond Financial