Interested in buying an established repair business

[DaveInPhx]

I've been looking at buying some sort of small, one-person operation and I've always been interested in windshield repair. I'm unemployed and don't have time to build clientele so whatever direction I go, I need a turn-key with positive cash flow right out of the gate.

I've looked at all of the local sources of classified advertising to see if anyone is selling an established repair business, but I'm not finding anything that way. Does anyone know of an online resource where people buy and sell their windshield repair businesses?

Thanks in advance!

[harrellbenjamin]

Originally Posted by DaveInPhx

I've been looking at buying some sort of small, one-person operation and I've always been interested in windshield repair. I'm unemployed and don't have time to build clientele so whatever direction I go, I need a turn-key with positive cash flow right out of the gate.

I've looked at all of the local sources of classified advertising to see if anyone is selling an established repair business, but I'm not finding anything that way. Does anyone know of an online resource where people buy and sell their windshield repair businesses?

Thanks in advance!

Buy a Delta Kit.Get trained.Get your head on right and go make money.........Check with your local dealers and see who do's there repairs.Might be some help there.

[GlassStarz]

You could buy a kit and pay someone to come out and show you how to sell it and help you build some accounts. Doing it this way you see how to sell you get some imediate accounts

[Blind Squirrel]

Are you looking to buy in your area?, I'm guessing Phoenix by your screen name.

If so, I would look up every windshield repair company in the phone book as well as ask around at some auto dealerships and trucking companies to find out who they are, then contact them and ask if they are thinking about selling their business.

I should mention that the rule of thumb when establishing the value of a service business is the average of 5 years revenue along with the current value of any tangible assets.

Are you willing to relocate, and if so, to what areas? Do you like Colorado?

[jayjacque]

I don't get why some are thinking this guy's head is not on right. There is nothing wrong with his thinking whatsoever. Some of us, perhaps many of us, have built up a very good and steady clientel that is worth selling as a profitable business with easy training and transition. This should appeal to someone(s) getting ready to retire or wanting to sell out in order to get into something else they like. In other trades this is done all the time. In fact some of mobile auto reconditioning business' are going for 6 figures, depending of course on how large an operation is being sold. I put myself in the OP's shoes; I've done an auto reconditioning business in 4 cities now, and to have the immediate business/accounts he's referring to is very valuable.

[Brent Deines]

I agree with Jay. It's not about how much you pay or don't pay to get started, it's about how much you put in your pocket at the end of the day. Some people are very good at developing a business from scratch, and others are better at managing an existing business, but lack the patience for laying the foundation.

I would gladly pay $100/day for existing accounts that produce $200/day, or $1000/day for existing accounts that produce $2000/day. Some people get so blinded by the cost of doing business that they fail to see the benefit of experience.

The problem is that most people know how much time and effort went into developing a business, and feel they should be compensated for that. Unfortunately for the seller, but fortunately for the buyer, that is not the way it usually works. Blue sky has very little value, so you can often pick up someones existing accounts for pennies on the dollar if they are truly ready to get out of the business.

Just be sure you do your homework. Talk to the accounts to make sure that they are willing to stay with you, or at least give you a fair shot, after the sale and have the seller sign a non-compete contract. Most importantly, have the seller pay for an independent appraisal of the business. Most of the time the appraiser will estimate the value far lower, and much more realistically than the seller. The business may be worth more or less than the appraisal, but at least it gives you a good place to start negotiating.

I'm not saying it's the right move for everyone, but in some cases buying an existing business can help jump start your venture.

[t4k]

The industry standard in acquiring an existing business with a minimum of a five (5) year sales / track record is: 1 to 3 times the yearly gross receipts. W/S repair would fall at the lower end of the scale because you are essentially purchasing the goodwill or customer base. A company with expensive equipment or fixtures such as a restaurant would be at the top end of the scale @ 3 times the yearly gross. As an example, if you are looking at purchasing a W/S repair business that has a consistent yearly gross of $50,000.00, you would pay $50,000.00 for the company.

T4K

[Brent Deines]

While that may be true for some businesses, unfortunately it is not quite that simple for most, and not at all true for a small service business like windshield repair. For instance, a company that has a gross sales of $100,000 but has no physical inventory and has lost money every year is not going to be worth $100,000. In fact, it may be worth nothing at all.

I have had several businesses appraised and the physical assets typically make up the majority of the value, then the profitability and how much the owner takes home are considered. The "accounts" are what you typically only get paid pennies on the dollar for, and that is about all you really have to sell with a windshield repair business. That's why I think it makes sense to buy an existing windshield repair business if it is properly valued.

I got about 30% off my annual gross sales for my glass replacement business when I sold it, and that included a vehicle, computer, furniture, and a lot more tools and equipment than a windshield repair business would typically include.

Personally when looking for a business to buy I look at the profit more than anything else. If there is enough profit to make the monthly payments for 10 years and still provide a reasonable profit, it is a business worth looking at. If you have a lot of money and don't need the income you may look at a business a bit differently, but most of us in the windshield repair industry need to see some profit to make a business purchase worthwhile.

The other thing I look at is how important the seller is to the business. Will I lose 1/2 the accounts the minute he walks out the door, or will I be able to maintain these accounts for an extended period of time? If you aren't sure, you need to be very careful.