Owner Secures Competitive Price & Long-Term Lease

Background

For 20 years, H&R Auto Body was a successful, independent shop in Leander, Texas, one of the fastest-growing suburbs outside of Austin, Texas. The space is over 12,000 square feet on nearly two acres with extensive frontage on Highway 183, which sees over 30,000 vehicles per day. Because of its location and annual sales of $2.5 million from the last two years, the owner had been approached with many offers for their business. The best direct offer they received was for $1.4 million. After much research and diving deep into the market, Matthews agents determined the property’s true market value to be $2.1 million, which equated to a 7x EBITDA multiple or 90% of sales.

Strategy

Matthews™ Agents Blake King, Beryl Grant, and Clay Smith were hired to represent the seller exclusively in the transaction. In less than a month, the brokers generated two competing offers, both far more attractive than any of the direct offers the owners previously received. In an impressive show of efficiency, the agents sealed the deal from listing to closing in just three months.

Results

After evaluating the terms of each offer, the owners selected an offer that was 100% of the list price of $2.1 million. The buyer, who had previously come in with a direct offer of $1.4 million, increased their offer by $700,000 to stay competitive and involved in the deal. Not only did the owners sell their business at a great price, but they also secured a long-term lease and annual rent of $144,000 per year by opting to keep the real estate.