HPH for sale? Options

[MartyYeoman]

I just saw this both on Craigslist and Facebook Marketplace.
Maybe Rich is just fishing.

[Superhawk996]

Here’s another way to look at it.

It’s not uncommon for a small business to sell for a price of 5x its annual bottom line revenue. Yah - I know this is CA and the property value may skew it a little.

So to go for 5x profits, that means the business needs to pull down $2m a year in profit after all else is paid including mechanics, a shop manager, property tax (not insignificant), utilities, insurance, building maintenance, and other miscellaneous overhead.

Now the question becomes what does the gross revenue need to be to end up with $2m profit? I honestly don’t know what that number needs to be in CA to net $2m in annual profit. Let’s be modest and say $4M to make the math easy.

So we have $4m that needs to be covered by 8 bays. That’s $500,000 gross revenue per bay.

Not implausible, but it sure isn’t going to happen by only working on vintage air cooled stuff, I suspect there just isn’t that much demand. Even in the Bay Area. So that means the shop has to do way more than just air cooled work.

Now that hoard of vintage air cooled parts is looking like even more of a boat anchor.

My math is fast and loose but you see where this is going.

I wish I could buy it and somehow make a go of it, but my napkin math $ business case doesn’t look too appealing.

When it sells, I’ll bet it sells for the value of the property alone which still won’t be cheap but I suspect it also won’t be $11.5M. Unless I hit the Lotto and start a 914 charity program.