Quantcast
Jump to content


[Podcast] Multi Shop Operations – Acquisition – Selling [THA 171]


Recommended Posts

https://youtu.be/VTp_2k2_Cuc

Greg Bunch is the owner of Aspen Auto Clinic, a five-location automotive and service business in Colorado. Greg started his passion for cars at 15 when he began rebuilding a 1966 Volkswagen Bug. Greg has moved from a Volkswagen mechanic to ASE Master Technician, to Management, to starting his shop 18 years ago in his garage, to an award-winning multi-location business.

Greg is currently a board member for the STEM-based charter school call “Automotive Institute of Science & Technology” and on the Advisory board of Ratchet and Wrench Magazine. Greg is also a board member of the Autocare organization and a certified instructor for the Worldpac Training Institute and Carquest Technical Institute. Greg’s unwavering passion for the industry has also led him to form a company called Transformers Institute, a coaching and training company dedicated to transforming the automotive industry.

Listen to Greg’s previous episodes HERE. Transformers Institute HERE.

Dwayne Myers is a partner in Dynamic Automotive in the greater Maryland area. Dwayne invests time in the industry with the Auto Care Association and serves on the education committee with CCPN (Car Care Professional Network). Dwayne was recently honored as one of only 17 outstanding individuals that qualified for the prestigious 2017 World Class Technician Award presented by The Auto Care Association and ASE. He is very passionate about hiring and sustaining a strong and engaged team. Listen to Dwayne’s previous episodes HERE.

Doug Grills from AutoStream Car Care Center is a chain of FIVE family-owned, automotive service facilities that deliver honest and professional automotive repair and maintenance services to customers in the Greater Baltimore/Washington, DC area. Doug along with his partner Rick Levitan has been around the service station business for over 25 years and have built their reputation by offering best-in-class service to their customers.

All AutoStrem Car Care technicians are ASE Certified and the shops are AAA approved. Listen to Doug’s previous episodes HERE.

Key Talking Points:

  • Don’t fall in love with an opportunityA magazine survey a few years ago: 56% of shop owners wanted to be out of business by 2020. They are shopping their business
  • Disciplines to haveLocation, Location, LocationDo your research, internet search on demographics, traffic count
  • Cash is King
  • Team, People
  • If you don’t have strong systems and processes don’t even consider growing to another location
  • Standard Operating Procedures (SOP) are required to scaleWritten and documentedWriting it down forces you to understand it and know how it works.
  • Perpetually tweaked
  • Each operation should engage with the customer the same way and operate the same way
  • Watch the movie ‘The Founder’ all about Ray Kroc from McDonald’s
  • Watch the TV show ‘The Profit’ all about People, Process and Product
  • A diamond in the rough could entice youLong time business
  • You feel strongly you can turn it around. The Potential with new energy and perspective
  • Strong location and business that is not keeping up
  • You know your strategy, systems, processes and people will work in the marketplace
  • If the owner is the reason for the business and he/she leaves this could impact your diamond
  • Everyone wants $1,000,000 for their business but the numbers must substantiate it. It is an emotional life work valueThe seller needs to show you how they came up with $1MAn emotional issue
  • What is your cash flow
  • Strenght in the fundamentals of the business
  • Come to common ground
  • Understand the multiple or blue sky value (premium above cash flow)
  • You must have good financial statements
  • Make sure your business can function without you and be profitableNo vacation for years
  • Consider a broker to help you legitimize your valueThere are pros and cons to hire a broker
  • There are fees and the process may be longer
  • Show no emotion to the seller over the asking price
  • A Business Broker will be able to help make the numbers real
  • Your banker will not let you over-invest
  • The final number will constituteWill the owner carry paper
  • Do they want one check
  • Do they want a monthly check to support their income once retired/sell
  • Cash is King and so is your BankerYou need a good cash position, well-capitalized
  • A banking relationship is key. Highly suggest community banks versus the large nationals
  • Practice Profit First to put cash in places that you can not spend it.War chest monies for tough times and growth
  • Lines of credit are important when you need them. Pandemic is perfect example of a huge need
  • Determine a strong or smart multiplierA multiplier is the monies paid for a business over and above the EBITDA (earnings before interest, taxes, depreciation, and amortization) depending on the value of the business in the marketplace and to the buyer. For example, the business makes an average of $200K for the last three years. Because of the marketplace, location and many other factors the multiplier could be 3.5 times, therefore $200K x 3.5 would be $700K to offer for the business
  • Multipliers vary but can be stable within a market or at a premium for a top-flight business. Multip shop operators will get a higher multiple.
  • Pandemic has put some holds on private equity invests however there will be opportunities to grow because some shop owners are going to want to call it quits and there will be some great locations to choose from
  • To research a demographic profile on a location you can get from Google and there is also traffic count available.Income levels, cars per household, etc. are necessary to help evaluate the location
  • Ask around from businesses in the area and town
  • Look at Google reviews
  • Permits for buildings and growth in the town
  • Is the area alive are dead
  • You can pay for this information
  • A gut check is to ask yourself if you would want the business if there wasn’t an auto shop in it?
  • The location and demographics It needs to fit your business model
  • Performing a strong due diligence review is a must and will provide you information to help you make a smart decision
  • You get paid on what you are doing and the buyer find the synergies to help him afford the deal. The better your business runs and the more profit it has will get you a premium price or multiple.

 

Resources:

Facebook   Twitter   Linked In   Email

Mobile Listening APP's HERE

Join the Ecosystem - Subscribe to the INSIDER NEWSLETTER HERE.

Buy Carm a Cup of Coffee 

Shop-Ware-Call-To-Action-Graphic-v3.png

This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at shop-ware.com

Click to go to the Podcast on Remarkable Results Radio

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By carmcapriotto
      Kevin Syed, Owner of Integrity 1st Automotive, 8 Locations, Dallas Fort Worth TX, grew up with an entrepreneurial father and was always encouraged to lead. Having successfully earned a Bachelor’s degree in Business Management from University at Buffalo, Kevin went on to become a franchisee with Getty Petroleum / British Petroleum service centers for the better part of a decade in New York City. After gaining the knowledge, experience, and funding required to produce his own operation, Kevin went on to operate his own independent shops in New York. Kevin sought to find a new place to call home with his wife and twin girls; he longed for the community values and environment of the South and so his family made the decision to move to Texas. Integrity 1st Automotive was then born in Texas and Kevin has scaled his business to multiple locations across the Dallas Fort-Worth Metroplex. When he’s not working, Kevin enjoys local car rallies (e.g. Lamborghini Club Dallas), traveling, and hunting. Listen to Kevin's other Episodes HERE
      Carl Hutchinson, Owner, Complete Automotive, 2 locations, Springfield, MO has been in the car industry since 1982, but has worked on vehicles long before that time. He has a passion for engineering, for understanding how vehicles operate, and how to repair a customer’s concern. Earlier in his career, Carl started working at a GM Dealership, then went to work at independent repair facilities as a technician and eventually became a service advisor. Carl’s experience in the automotive industry led him to his current position as co-owner with Maureen Hutchinson of Complete Automotive in Springfield MO., where he works every day to provide high-quality, valuable service to all customers. Carl is an Alumni with Ozarks Technical Community College, Springfield MO Campus. He currently sits on the Automotive Advisory Board with Ozark Technical Community College, a member of South East Rotary, and a member of the Springfield Midwest Auto Care Alliance chapter. Carl has his Master ASE Certification, L1 and Service Advisor certification and is an AMI Graduate. Listen to Carl’s previous episodes HERE Kenny Wedow, Owner, Fine Tuned Auto, 2 Locations, Broomfield and Erie CO  knows cars. A natural talent even at the young age of 17, he pursued it auto repair in shop classes in school then slipped right into the work field. Working for dealerships such as Saturn, and Nissan, as well as other independent shops, has afforded Wedow with extensive and well-rounded education. More importantly, before Wedow branched off to open the doors of Fine Tuned Auto in 2013, he already learned the importance of patient diligence. Many dealerships and independent auto shops can default to make generalizations about the problems with your car, sometimes not always seeing the things that really might put you in danger on the road. The patience Wedow has to pull everything apart if need be to find the root answers makes him unique in his field. It is a quality that got him promoted to foreman at a Nissan dealership when he was only twenty-three. It wasn’t that the six technicians under him weren’t experienced, in fact, some of them had worked considerably longer than Wedow. However, his attention to detail and follow-through put him above and beyond. Listen to Kenny's other episodes HERE
      Key Talking Points
      Building Trust- Focus on relationships, not transactions. Reviews, book of business, referrals etc. People always like to try something new, wow them. Make customers feel better- don’t fake it. Location Location Location- be selective. Walk-ins at an easy location will increase with oil changes etc. First chance to gain customers for life.  First impression marketing- Kenny uses poker chips with his information to attract new customers. Signage, uniforms, customer waiting area etc elevate the professionalism. The image plays a huge role in sales, female-friendly bathroom/lobby, cleanliness, smell in the waiting lobby, convenience etc. Be mindful of female customers, educate and simplify.  Direct mail, google ads, geofencing- who is your clientele? What advertisement is right for your area? Once you have multiple growing businesses- what is your year after year retention?  Why do people choose certain careers/trades? What is the reason? Look at different industries and see what they provide.  Focus on the relationship, not the transaction   Be involved in the community Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partners:

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

      Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few?
      Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day. Broadly helps you automatically request reviews so that your customers can promote your business with just one click. When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review. Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop.  Visit www.getbroadly.com/chat to learn more.
      Click to go to the Podcast on Remarkable Results Radio
    • By champtires
      Champtires – one of the leading e-commerce used tire sellers – is not facing supply chain issues. In fact, over the past several months, Champtires’ inventory has grown exponentially.
      “Luckily, we are still able to source really great tires right now,” said Brad Rea, president and founder of Champtires. “Ninety percent of our inventory has 7/32 tread or above, and we’re adding hundreds of Michelins, Pirellis, Continentals – tires in every brand really – every day.”
      Reselling used tires with significant tread life left saves them from ending up in a landfill. And it allows consumers and auto businesses to save drastically compared to new tire prices.
      “Relying on premium used tires is a responsible way to use recycled products while saving yourself a lot of money,” Rea said.
      High quality used tires are perfect if you need to match one or two to a remaining set or when replacing all four tires. Every tire that enters a Champtires facility goes through a thorough three-step inspection process. Free FedEx shipping is included on all website orders to the continental U.S.
      Learn more and shop now at Champtires.com.
    • By carmcapriotto
      John Eppstein, owner of John's Automotive Care, San Diego CA has been in business since 1998. The business is a complete general automotive repair and a smog test station. John’s Automotive Care has been relocated twice; the last move was in 2003. John has been in the automotive industry since 1985. He is the Immediate Past President of the B & G Clubs of East County where he's worked since 1996. He is also a member of a local NAPA BOG group. John's been a member of ASCCA's Chapter 24 for over 12 years during which time he has served as secretary, vice president and chair of the Meetings Committee. John's Automotive Care is also currently an ASC Educational Foundation Cars for Careers donation site for San Diego, CA. Listen to John's other episodes HERE
      Dave Kusa is the owner of AutoTrend Diagnostics in Campbell, CA. Dave is very active in Chapter 42 and currently serves as a board member and chapter representative. He has also helped several new shops become ASCCA members. Dave advocates with local legislators on behalf of small businesses and their employees. He contributes to TeamTalk and is a huge resource for members. He was ASCCA’s past president. Look for Dave’s other episodes HERE.
      Key Talking Points
      Purpose - Raise funds and money to support and encourage technical education and training for the automotive industry through scholarships, endowments, career development and other industry inspired programs. Vehicle donations from customers that go to auction- “cars for careers” Example- transmission/engine repairs. You are able to donate a vehicle  no matter where you are, it’s not limited to only California Low overhead- about 75% of the money coming in from the vehicle donation program gets put into funds. Volunteer-based foundation. You don’t need to be a shop owner to be included in the board of trustees (tax advisor, grant writer etc) Last year they awarded 28 scholarships to 16 deserving students for a total of $23,500. To date, this is the largest amount awarded in the history of the Foundation. Schools involved - community colleges across California such as Cuyamaca College, Skyline College, Rio Hondo College, San Diego Miramar College, Citrus College, Chabot College, UTI Vetting process – Scholarships are awarded to students who fill out applications at https://automotivescholarships.com/ all applicants that meet basic requirements are then scored by a panel of automotive professionals and winners are picked from the highest scoring applicants. Opportunities to create a scholarship- John has started a scholarship with his business. He will match whatever his employees put into it. There are also one time scholarships for smaller amounts.  
      Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partner:
      Since 1989 TRACS has been the industry’s leading shop management system. And in the last 30 years it’s gotten better and better. Today TRACS Enterprise offers even more of the features AutoCare Center owners want—things like a powerful interactive scheduling calendar, faster and streamlined work flow, plus streamlined parts ordering and purchasing options. And there’s more—Punch-out to Mitchell ProDemand, mobile VIN capture, and multi-shop capabilities. That means you can count on TRACS Enterprise to help drive your success today and well into the future. Learn more about TRACS Enterprise and the hundreds of other benefits the NAPA family has to offer. Talk with your servicing NAPA store or visit www.NAPAAutoCare.com.

      Click to go to the Podcast on Remarkable Results Radio
    • By ASOG Podcast
      ASOG Podcast LIVE from TOOLS 2021 - Adam Rath on Leadership
    • By ASOG Podcast
      ASOG Podcast LIVE from TOOLS 2021 - Bret Fadely & Adam Rath


  • Our Sponsors



×
×
  • Create New...