Location: Pocatello, ID
The attached spreadsheet is a model for a Pocatello auto repair service located in Pocatello, ID and is currently listed for $850,000. The model includes a pro forma income statement and balance sheet for the service. The model is based on market assumptions with auto repair services in Pocatello. The model is set up so a user can change the inputs and the model will use the inputs to calculate the numbers.
In the model with the current input values, this auto repair service has a weighted average cost of capital of 3.37% with an IRR of 6%. With the current inputs, we have made it possible for the auto repair service to actually generate a return. However, we don’t know if the sales price of the Auto Repair service is a reasonable amount. Based on our information, there are over 70 auto repair services within the area. Some of them have more brand awareness. So we believe that if one wants to invest in this repair service, they must be confident that they can compete and create brand awareness. This would not be an investment that you can expect to generate revenue without effort on your part to change the direction the company is currently heading.