Distributor of Automotive Related Equipment

Price: $199,000

Location: Springfield, Missouri

Industry: Wholesale and Distribution

Listing ID: 42500023

Listing Status: New


Highlights of Business
• Business is well established and nicely profitable
• Home-based
• Seller works about 20 hours per week
• No inventory necessary
• Very flexible hours – virtually no nights or weekends
• Clean books and records
• Seller will train
• Business is selling for less than its valuation of $225,000
• Business qualifies for SBA financing, which means lower down payment and longer repayment terms
• Seller will sign a non-compete agreement

History/Operations of Business
The previous owners started the business in 2010. The current owner bought it in late 2021.

The company sells automotive related equipment.

Most of the owner’s time is spent in preparing quotes and ordering equpment. The owner also prepares invoices and performs some bookkeeping functions, working about 20 hours per week.

The business is operated entirely from the owner’s home. Neither prospects nor customers ever come to the home.

The seller of this business is representing that the Discretionary Earnings (also known as Normalized Cash Flow or Total Owner Benefit) of the business were $102,905 for 2022 and that the annualized Discretionary Earnings for 2023 are $116,880, based on the Jan-Oct 2023 income statement for the business, and that they can prove it to a buyer and their accountant’s satisfaction.

Outlook for the Future
There are several hundreds of thousands of dollars of active quotes currently in place, many of which will likely result in sales in 2024.


Down Payment: $24,350

Total Sales: $963,029

Cash Flow: $109,893



Accounts Receivable: N/A

Accounts Receivable Included: No


FFE Included: Yes

Inventory: N/A

Inventory Included: Yes


Year Established: 2010

Owner Hours Per Week: 20

Non-Owner Payroll: N/A

Employees: 2

Absentee Owner: No


Real Estate: N/A

Monthly Rent: N/A

Type of Location: Home-based business

Relocatable: Yes


Facilities Information:

Home-based business

Reason For Sale:

Owner wishes to retire.

Training & Support:

The seller will provide 4 weeks of dedicated training at no additional cost.

In addition, one of the primary equipment manufacturers this company represents conducts a 5 day distributor training program to familiarize new distributors with their equipment. The training is free of charge – new distributors pay only for their travel and lodging. The training is held periodically throughout the year.


This business qualifies for SBA financing, since it has good books and records, and is priced appropriately for its Discretionary Earnings. See the Test for Reasonableness of Purchase Price calculations elsewhere in this business review for a typical financing structure.

The seller estimates that $15,000 would be needed for working capital. Buyers should consult their accountant if necessary, to determine if that is an appropriate amount of working capital for this business. Most lenders would be happy to loan that much or more in working capital for this business, as the cash flow from the business would fully support it.

Down payment for the business would be approximately $24,350, assuming an SBA loan, sales price of the business of $199,000, $15,000 borrowed for working capital, and loan expenses added to the SBA loan of $3,500.

The advantages of a business being able to be financed with an SBA-guaranteed loan are:

1) A lower down payment than a seller would require were they providing financing (typically only 10% of the Project Cost is required by SBA rules);
2) A much longer term than a seller would offer (typically 10 years per SBA rules); and
3) A lower interest rate than a seller would typically offer (currently around 10.0%).

Often a conventional loan is not a possibility in financing the purchase of a business, because the cash flow of most successful businesses is worth more than the value of the business’ assets, so there is insufficient collateral to secure a conventional loan. SBA loans are based on the cash flow of the business and for the most part are made irrespective of the amount of collateral available.


The SBA historically has charged a guaranty fee of approximately 3.5% of the guaranteed portion of the loan, which is 75% of the total loan. The guaranty fee is added to the loan.

To help offset higher interest rates, the SBA is currently waiving the guaranty fee for loans under $1,000,000.

On this business, the savings in guaranty fees is approximately $5,138, as long as the current attractive SBA guaranty fee provisions remain in place.

For more information on this listing, please complete our Non-Disclosure Agreement