This company has been established almost 50 years. They re-manufacture engines and also provide installation services. Most engines are for cars, but they also work on larger truck engines, heavy duty power equipment, classic cars. The owner has not been involved in the business for the past 15 years and his wife has spent a little time in it on the bookkeeping side. There is a general manager in place that has been in the business for over 35 years and he would like to continue in the business (he also owns a small portion of the business). While the general manager knows a great deal about car engines and sales, he probably lacks some skills necessary to grow the business on his own as a full owner.
Some engines are bought as cores and then built for stock, but the majority of the work is done to order. Most engines can be re-manufactured within a two week time frame. There are 7 lifts at the facility which allows some of the techs to do installs, but a number of customers chose to do their own installations. Competition tends to be used car dealers, new car dealers with service shops, bone yard selling used engines, internet sales of re-built engines and other machine shops.
This business has all the equipment necessary to properly test engines which many other shops do not have. This has allowed them to have a stellar reputation for quality work and services. There are 8 employees and most of them have been employed long term.
The owner is receptive to all fair and reasonable offers, but the value of the equipment and inventory likely exceeds $400,000 alone. The company is an S-Corp. and the owner owns the real estate which he has a preference to sell, but will consider leasing the property. He pays himself $5,000 per month rent now and estimates the value to be approximately $900,000 but a final price can be subject to a third party appraisal.