Aamco

Dino Caporosssi wanted to assess the advisability of purchasing an operating Aamco franchise. Dino was referred to the Indiana University of Pennsylvania Small Business Development Center (SBDC) by a bank lending officer who felt we could assist him analyze the opportunity. 

The IUP SBDC helped him review the historical financials and undertake the due diligence he needed to come to a decision. A critical aspect of this process was for Dino to discuss operating procedures and marketing strategies and tactics with other franchisees. Subsequently, the SBDC worked with him to create several projections and a business plan utilizing different scenarios given the operating changes he envisioned. The process increased his confidence that the purchase was advisable and helped him develop his plans for operating the business. At the conclusion of the process Dino was surprised by the amount and quality of assistance and insight the SBDC brought to the process.   
 
Specifically the SBDC helped by:
  • Analyzing the historical financials
  • Identifying breakeven revenues
  • Researching the industry
  • Deepening client’s knowledge of due diligence regarding a purchase of a business
  • Developing a business plan with financial projections
  • Discussing various financing options
  • Reviewing industry rules of thumb for valuing this type of franchise

Dino Caporossi purchased the franchise and has instituted the operating changes he envisioned. Initial results have been encouraging and have reinforced his decision to purchase the facility. There is no buyer’s remorse in this instance, because of a great deal of quality research that led to the purchase.