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Deal Alert: Arizona-Based Collision Repair Center with Strong Margins and High Growth Potential
š Location: Arizona
š° Revenue: $2.2M (2023)
š Earnings: $1.3M
š Why This Business is a Standout Opportunity:
This Arizona collision repair center represents a high-margin, low-overhead model in the automotive repair sector. Its unique approach focuses on maximizing revenue per vehicle serviced, rather than pursuing high-volume repairsāa strategy that keeps margins strong and builds customer loyalty. The shop brings in a remarkable $1.3M in earnings, representing a highly efficient operation. The fact that 50% of their clients are repeat customers, with the rest from online reviews and referrals, underscores their brand strength and customer satisfaction.
The absence of insurer contracts also gives the business pricing flexibility, allowing it to maintain a premium service level without being constrained by insurance reimbursement caps. Add in their exclusive use of OEM parts, and itās clear this shop is positioned as a high-quality provider in an industry that often sacrifices quality for volume.
Growth Potential ā What the Future Holds
This business is primed for expansion in multiple areas. The shopās current operations leave room for increased capacity: theyāre only open four days a week, with the owner working 20 hours weekly. Extending hours and adding workdays could immediately drive up revenue.
The centerās low-overhead model, relying on subcontractors and only two full-time employees, also suggests scalability. Investing in digital marketing is an untapped growth lever that could widen their customer reach, especially as the population in the area is booming, with 6,000 new homes on the way. Partnering with direct repair programs could bring in consistent business from insurance companies while still maintaining flexibility with premium services.
Key Advantages:
Established Reputation: Since 2016, this business has built a strong local presence and brand recognition.
Healthy Financials: $2.2M in revenue and $1.3M in net earnings indicate efficient operations and consistent cash flow.
Asset-Light Model: With subcontractors and limited full-time staff, this center operates efficiently, reducing overhead.
Massive Market Opportunity: Arizonaās population growth and the new housing developments nearby create a sustained customer influx for automotive services.
Turnkey Business: With established operational processes and a loyal customer base, a new owner can step in and immediately take advantage of a profitable model.
š My Analysis: This Arizona-based collision repair center offers a low-risk, high-return opportunity with strong growth potential. With consistent earnings of $1.3M on $2.2M in revenue, the shopās asset-light model and established brand reduce initial risks for a new owner. The flexibility from its lack of insurer contracts and exclusive use of OEM parts set it apart from larger chains, allowing it to maintain higher margins and a premium reputation. Located in a growing area with 6,000 new homes on the horizon, expanding operating hours and adding digital marketing could boost revenue quickly. Priced at a fair 3.6x multiple, this acquisition is an attractive, high-quality entry point into a booming market.
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Recent Case Study
Reza acquired 2 construction businesses making $20mm in Canada [link]
Recent Acquisition Stories:
Marygold Companies Acquires Stake in Midland Capital
The Marygold Companies recently took a 7.95% stake in Midland Capital, a privately owned holding company, with an investment of $1.8 million. Additionally, they secured 180,000 warrants to potentially purchase more shares at a set price, adding a future option to increase their stake further if Midland's growth aligns with Marygold's expectations.
Personal Take: This move highlights a strategic approachāacquiring a minority stake with a relatively low initial investment while keeping future control options open. Marygoldās choice to invest in a holding company indicates a desire to diversify and expand into multiple avenues in one shot, as Midland Capitalās holdings may span various sectors. Itās a solid way to gain influence and leverage without immediately taking on full ownership risks. Deals like this one can be both a testing ground and a launchpad for future acquisitions.
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Recent Youtube Video
The Canadian Behind The 54B Conglomerate [link]
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-Moran Pober
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