Business Summary

Edmonton, Alberta
Automotive Equipment Repair Center
Investment level: 675,000
Type of sale: Share Sale
Pre-Approved Financing is in place ( OAC)

It is time for our clients to retire and move onto the next thing in their lives. This 61-year-old
B2B legacy business has been in operation with the current owners for over 17 years.

The business offers buyers a variety of revenue streams, such as repair, servicing, parts sales,
and warranty work for a long list of Canadian Commercial Retailers and Service Providers.

Best Fit Buyers
• Someone with strong automotive background
• Someone with strong management experience.
• As an add-on revenue stream to an existing repair business.

By repairing automotive equipment which would end up in landfills this business helps to
contribute to a greener environment.

Along with the owners, this business’s long-term and experienced staff will be able to assist
buyers throughout the entire transition of this business.

Business at a glance
Years of operation: 61 years. Current ownership: 17 years
Owner Responsibilities: General Manager. Training of new staff.. Overseas the day to day.
Hours worked per week approx. 45.
Key Strengths
History and reputation; diversified services; strong and loyal customer base; long term staff.
Lease: Expires November 2025 Option to renew available.
Staff: Fulltime: 4 Part Time :1
Hours of operation: Mon-Fri- 8:00 –4:30 pm
Sales: 2021 (677,000) 2022 (737,000) 2023 (733,000)
Normalized Seller’s Discretionary Earnings 3 Year Average: 193,000

Business loan calculator for the Cash Flowing Part of the business
When it comes to financing a unsecured (no property involved) business loan, generally, financial
lenders use a 5-7 year repayment period, with buyers investing 30-35% of their own money. Lenders
will also require buyers to have additional funds for start-up costs such as inventory, staff salaries,
insurances etc.

A six year pay back with a 30% down payment by the buyer has been used for this scenario***

Common sense is the rule of thumb here. The cash flow from the business should cover the debt
service and afford the buyer a good income.

Scenario 1 Cash Flow of the Business Numbers have been Rounded off.
Price of business : 675,000
Down payment: 203,000
Amount financed: 472,000
Term: 72 months
Interest rate: 9%
Monthly payment: 8,500
Annual payment: 102,000
3-year average of owner’s SDE: 193,000
Minus annual debt service: 102,000
Buyer SDE left over after debt service: 91,000

**A 9 percent interest rate has been used for illustration purposes. Buyers may be able to find lower
interest rates.
*** A 6-year unsecured loan payback scenario has been used for illustration purposes. Some lenders
are now offering longer 8- & 10-year payback terms which would lower the monthly loan payback.

A Virtual Discover call with the owner will be available, once a buyer’s profile has been completed.
Thank you for your interest in this business opportunity

Property Details