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- Sep 23rd (Mon) 8AM NY
Sep 23rd (Mon) 8AM NY
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Deal Alert: Automotive Repair Business
๐ Location: Undisclosed
๐ฐ Asking Price: $800K (+ optional $2M for real estate)
๐ Revenue: $1.65M
๐ผ Net Profit: $287K
๐ Why This Business is Great:
Established Business:
Steady revenue growth from $1.34M in 2019 to $1.65M in 2023
Strong net profit (SDE) of $287K in 2023, a notable improvement over prior years
Expenses:
Payroll: $354K/year
Rent: $180K/year
Opportunity to purchase real estate for $2M, reducing future rent expenses and securing a long-term asset
Client Base:
Long-term, high-value clients including FedEx, Loweโs, and state departments
Built-in business relationships, reducing customer acquisition costs and ensuring stable recurring revenue
๐ Additional Perks:
Diverse Revenue Streams:
Automotive repair is a broad service industry with both consumer and fleet-based clientele.
With the existing client base and high-profile partners, this business has a strong foothold in the local market.
Real Estate Option:
Purchasing the property for $2M offers additional asset value and flexibility for long-term expansion.
Owning the property can protect the business from rent hikes and provide a stronger exit valuation down the line.
Strategic Location:
A new truck stop is under construction nearby, which will likely increase traffic and generate more fleet service opportunities.
This business is ideally positioned to benefit from a surge in demand.d
Growth Opportunities:
Expand Fleet Services Marketing:
With established relationships with state departments and major brands like FedEx, there is significant room for growth by targeting more commercial and government fleets.
A focused marketing push could bring in more fleet maintenance contracts, increasing both revenue and stability.
Leverage New Developments:
The new truck stop presents a unique chance to target long-haul drivers and trucking companies, broadening the business's customer base.
Service Expansion:
By adding complementary services like vehicle inspections, roadside assistance, or mobile repair units, the business could tap into additional revenue streams.
๐ My Analysis: This automotive repair business offers a solid opportunity for acquisition due to its strong financials, established client base, and potential for growth. With consistent revenue and profitability, itโs clear the business is well-managed. The optional real estate purchase adds long-term value, while the nearby truck stop presents a growth opportunity through expanded fleet services. Targeted marketing and service expansion could further increase revenue. Priced at $800K, this deal is ideal for an operator or partnership looking for a stable, profitable business with room for innovation and expansion. The owner's readiness to step back makes it perfect for fresh leadership to take the business to the next level.
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Indian hotel giant Oyo has just struck a significant deal, acquiring Motel 6 and Studio 6 brands from Blackstone for $525 million. This acquisition marks Oyoโs continued push into the U.S. market, where it already operates over 320 hotels. With plans to integrate the Motel 6 brand while keeping it as a separate entity, this move allows Oyo to strengthen its presence in the budget hospitality sector.
On the surface, this acquisition appears bold, but some are questioning the economics. Blackstone originally bought Motel 6 for $1.9 billion in 2012, making the $525 million sale seem like a loss. However, the profit may have come from a decade of operations and possible asset sales, which could explain Blackstoneโs reported $1 billion in profit. The numbers, however, still raise eyebrows, and only time will tell if this acquisition becomes a milestone or a misstep for Oyo.
In my view, Oyoโs ability to turn this acquisition into success will depend heavily on their strategy for revitalizing the Motel 6 brand. While expanding rapidly in the U.S. budget market is a logical next step, Oyo will need to address Motel 6โs somewhat tarnished reputation to make this a win in the long run.
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