business for sale

[944Larry]

this was on a pop-up today and I looked at it due to it being in Florida. The asking price seems low compared to the inventory but what struck me most was the cash flow compared to the gross. Does this look kosher to the brain trust or is it a Florida rip-off? I am not interested in buying it either, just curious.
Thanks

Luxury, Sport, Exotic Auto Sales & Service: Business For Sale in Florida on BizBuySell.com

[bell]

Looks like you are only buying the location and fixtures, inventory can be purchased our consigned in addition.....
Depending on the location, if you'll need to have an environmental inspection/permits done it may be an ok deal.....obviously allot of research would need to be done......but just sounds like an independent who is having health issues and is selling his business...

[kaisen]

$300K in inventory is extra.

[944Larry]

Thanks guys, I was just curious about the deal.

[kaisen]

With no real estate, and no guarantees that the employees would stay, more than 2/3rds of their $475K asking is BLUE SKY

You could start that same business for much, much, much less

[McLovin]

It says "shop inventory, equipment & other assets" in the amount of $246K is included. So blue sky is around $230K. Still not an insignificant number.

The lease would be a big issue. Is is long term? High rent? Need to be personally guaranteed? Etc. A bad lease can be a huge liability.

IMO it's hard to value this type of biz. This is a very "low barrier to entry" kind of business. I.e., pretty much anyone with a pulse can get a used car dealer's license. You need a way to purchase/finance inventory, but buying this biz doesn't help you in that area.