Denver Metro Motorsports Dealership

This business if under a LOI until May 31st.  This allows me to still market it.  If you click through and fill out the NDA, I will let you know if it falls through.    

 In 2023, the earnings were 525K from 8.3M in revenues.  The earnings grew by more than 25% in 2023 and an average of more than 20% a year for the last 4 years.  This was despite the temporary negative impact from higher interest rates and tightening credit over the last year.  The sales price is 1.54M plus owned inventory estimated at 75K which is a multiple of 2023 earnings of only 2.9 times which is well below the average multiplier for dealerships which is closer to 3 ¾ times the earnings. 

Dealers typically sell for 3 ½ to 4 times the earnings plus inventory BUT we have priced this under 3 times the earnings.  Some of their revenues come from consignment sales which saves the buyer from having to buy the full inventory up front at the closing.     

The business has 25K in equipment, tools, office equipment, supplies, etc which is included in the sale.  The owned inventory must be bought at their cost as part of the sales price in addition to the 1.54M.   The consignment inventory is free to the Buyer because they don’t own it.  They Sell all types of motorsports vehicles including motorcycles, snowmobiles, ATV’s/UTV’s/Razors, scooters, and accessories. 

The Seller’s has decided to sell to move closer to his family.  He works 35 hours a week with 20 of those hours at the store.  He has been reducing his time at the store and transitioning the sales for years to his employees.  He is currently less than 15% of sales.  There are 5 employees including him.  His wife is not considered one of the other 4 but she does 2 hours a week in bookkeeping.  The new owner can easily do both of their jobs in under 40 hours a week.  In addition to the 5, there are two remote workers who do specific jobs: a title expert and a bookkeeper/accountant.  The current employees have all proven their loyalty to the company and they work well together as a team. The Seller is willing to train a new buyer with little or no experience as needed.  Although the owner has been involved in the business since its inception, he is not "the face of the business” and has reduced his hours substantially to spend more time with family.

The new owner will step into a great opportunity for growth and increasing the value of the business.  The business has grown and will continue to grow over time based on their very high traffic location, quality inventory, experienced salespeople, repeat customers, referrals, and services they provide including accepting trade ins, selling accessories, and increasing financing choices.  All that considered, this business is special, and we all believe this would work in any big city with good weather most of the year which makes this a franchise opportunity.  A 2nd or 3rd location along the front range of Colorado would also make sense or maybe one in the mountains where the inventory might have more ATV’s/UTV’s/Razors, and snowmobiles.  They have paid to lock down the name of the business through a trademark.  Other opportunities include selling through the website without the physical inventory on site which can be problematic for sellers who live in remote areas and don’t know how to sell their vehicles.  Advertising is currently 44K which is ½ of 1% of the revenues which is nothing compared to normal dealerships.  This is another reason why their profit margin is better than a typical dealership but also means there might be opportunities to increase this profitably. 

This company has a 4.7 Star Rating on Google, with 463 reviews which is excellent.  They have a great website with all of their inventory posted on the website.  This company has an excellent reputation in the industry.

 A bank will only require a 10% or 15% down payment from a qualified buyer depending on the buyers’ experience.  This business will qualify for an SBA loan for a qualified buyer.