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10 Year Old Medium/Heavy Equipment Sales and Rental Business.

Posted On:
January 7, 2014
Category:
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Location:
United States
» Colorado
Business Description


10 Year Old Medium/Heavy Equipment Sales and Rental Business.
2012 Cash Flow Was $1,588,887 on $10,925,915 in Sales. The next 12 Months Cash Flow will be $1.6MM on $13MM in Sales before add backs. $4MM down and you get $3,568,236 in equipment at their cost which is $4.3MM in market value(what they will sell it for). This does not include $50,000 in Non Rentable/Sellable Parts and Equipment, $150,000 in Small Tools, and $25,000 in Merchandise. You get $4.3MM in Assets Debt Free! The business also benefits from over $1.82MM in ADDITIONAL Equipment on consignment which is not their assets but the least risky and least expensive way for them to make money on sales. They make between 5% and 10% with virtually no overhead on this equipment. Equipment sales and rental companies of our size and profitability sell for between 4.5X and 6X earnings because of the proportionally large size of the equipment and inventory and the fact that it is a location driven business. Many long-standing customers with big names like Exxon, Encanna, and Williams along with hundreds of other long term customers has resulted in a high percentage of recurring business, plus we add hundreds of new customers every year! This is a Fun business to own and has loyal and long term employees that will all stay post closing.
The owner spent 19 weeks last year in Alaska gold mining during peak season. This negatively impacts the bottom line by at least $200,000 a year which means they should have made at least $1.8MM last year. In fact, the owner takes 25 weeks off a year. See the video interview with the owner to fully understand that he is unable to buy and sell equipment for a profit while he is gone and therefore the inventory his sales team has to work with is dramatically decreased until he returns. The business can run itself but a new owner will be able to substantially grow this company by just being there more than half of the year. Location: Western, CO. This is a truck and trailer sales, customization, and equipment rental business. They can find, customize, rent, or sell anything a buyer would need at competitive pricing with great margins. This Company gets orders from all over the country as proof of how impressive their operation is. They are the only medium to heavy equipment sales and rental company located in the heart of America’s energy development in all areas: oil, gas, and oil shale. As energy development recovers, it will directly benefit this company. They have a huge advantage in providing the equipment and trucks energy companies will need as the oil in that formation is extracted over the next 50 years. They are located near the largest deposit of oil and gas in the United States and one of the largest in the entire world. It is not if but when this formation goes into full production. The oil companies have been improving their extraction techniques for decades and are ready to start full production. The owner further states “We are the only Dragon dealer in Co and have permission to sell where ever, we sell into Utah, Wyo, SD, ND, Idaho, NM, Neb, KS. We are exclusive the Ranco dealer on the Western Slope. We are also an Eager Beaver dealer for Colorado. Basically a dealer in Co for Nuttall trailers , paper work is in progress, Working on a dealership agreement with Wink Trailers. We buy direct from Wacker, Genie, MMD(air compressors), Hustler mowers , Pro Tech truck accessories , Vibrotech screens. We are the NVE(vacuum pumps) dealer for Colorado. We are what Peterbilt calls a MAPP dealer for parts, main reason we deal in PACARR trucks, Pete & Kenworth.” The huge growth in energy in Colorado has started. Click on http://www.eccos.us/index.php?option=com_content&view=article&id=10&Itemid=6 for more details. This also will create the need for other equipment sales and rental locations along the formation which runs all the way to North Dakota which could dramatically increase sales and the bottom line. See this NBC News article dated 3 26 2013 to get a feel for what great timing this is to buy this company: Energy boom begins to ripple through US economy http://www.nbcnews.com/business/economywatch/energy-boom-begins-ripple-through-us-economy-1C8877092
Just email jeffce@companybroker.com
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Detailed Information
Inventory:Included in asking priceReal Estate:Not included in asking priceFurniture, Fixtures, & Equipment (FF&E):Included in asking price
Facilities: Their location includes 11,200 Square feet of very functional space on 5 acres of property. The business can be seen from I-70 and is located along the busiest road in town with tremendous exposure meaning free advertising. The building is custom designed for working on equipment and trucks. This is the largest and most functional sales, repair, and rental shop location in the region with plenty of room to accommodate a larger business as it grows. The real estate described here can be leased at the market rate or purchased for $2.2MM
Competition: This is a truck and trailer sales, customization, and equipment rental business. They can find, customize, rent, or sell anything a buyer would need at competitive pricing with great margins. This Company gets orders from all over the country as proof of how impressive their operation is. They are the only medium to heavy equipment sales and rental company located in ............. which is in the heart of America s energy development in all areas: oil, gas, and oil shale. As energy development recovers, it will directly benefit ..........
Growth & Expansion: Equipment sales and rental companies of our size and profitability sell for between 4.5X and 6X earnings because of the proportionally large size of the equipment and inventory and the fact that it is a location driven business. Many long-standing customers with big names like Exxon, Encanna, and Williams along with hundreds of other long term customers has resulted in a high percentage of recurring business, plus we add hundreds of new customers every year!Financing: 25%
Support & Training: We have the finest employees anywhere. We have 15 employees that are capable of running the business on their own and are all trustworthy, experienced, loyal, and will all stay after the transition. The two salesmen will both stay which is important for the new owner. It is good timing to add an outside sales person like we had when the area was growing back in t
Reason for Selling: The owner is retirement age


Asking Price: $4,750,000

Gross Income: $10,925,000

Cash Flow: $1,188,887


EBITDA: $1,188,887

FF&E: $350,000

Inventory: $3,593,236


Real Estate: $2,200,000*

Established: 2002

Employees: 15
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Henry Sankston
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  • January 9, 2014
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