Auto Repair & Tire Shop
Industry
Location
Business Broker
Situation
The owner of this auto repair and tire shop in Rhode Island had bought the business years ago and over the years had grown tired of owning and running the business. He wanted to retire and take time to determine what would be next. He reached out to other auto repair businesses and owners he knew who had sold their business and was referred to Ed Burkhart, Business Broker at BayState Business Brokers.
BayState Business Brokers’ Approach
Ed Burkhart brings years of experience in the automotive industry, having worked in the industry and sold many similar businesses as a business broker. His in-depth knowledge of the industry offers great value to sellers including this owner.
The owner had a talented technician on staff who expressed interest in buying the business. With an interested employee, Ed and the seller initially focused on spending time with this valued employee to see if his buying the business was a viable option. Ed introduced him to a banker to discuss and secure financing, and the owner and employee had in-depth conversations about the business and his background to take on ownership.
It became apparent that this was not the best option for the seller nor the employee so business broker Burkhart shifted the focus to marketing the business to targeted buyers and investors.
Quickly, two brothers emerged as a great fit to buy the business as they had acquired similar businesses through BayState Business Brokers and were looking to expand their investment portfolio. They were interested in securing a manager to run the business and were thrilled to meet with the technician and offer him the ability to expand his role in the business, including the customer-facing aspects and managing the P&L
Burkhart had marketed the recession-proof auto repair business separately from the associated real estate, but the prospective buyers wanted to buy both real estate and the business. A certified appraisal of the real estate was required as the sale price would be contingent on the appraisal to finalize the deal.
Results
The two buyers proved to be an ideal fit to buy the auto repair and tire shop in Rhode Island, including the management opportunity for the technician for him to learn and grow. The certified real estate appraisal came in as expected and the parties agreed to the terms of the deal. All parties were pleased with the outcome including the seller who is enjoying retirement and the buyers who are happy to have acquired a business with a solid customer base and associated real estate in prime location along with a talented technician to manage the business.
