CO Trailer Dealer, 5.9M Rev, 528K Earnings, 1.4M Assets
CO Large Trailer Dealer, 5.9M Rev, 528K Earnings, 1.4M Assets
South Denver’s Largest Trailer Dealer and Rental Store(Not RV’s)
The owner has asked me to only introduce highly qualified buyers. The current price is 2.4M and the Seller will pay off the floor plan of 400K after an accepted Letter of Intent to help Buyer obtain a bank loan. This will bring the total assets owned by the company to 1.8M made up of mostlyf new inventory at his cost.
Here is the link for the Non-Disclosure Agreement, “NDA”: http://companybroker.com/buyer-profile-jeff.htm If it is blue you should be able to click on it, if not please cut and paste that to a URL line and it will give you the NDA which will allow me to automatically send you the Full Sales Package containing a detailed data room with financials and a Comprehensive Video on the entire operation and a full interview with the owner by clicking on the secure web link to the NDA. If you have any questions or comments on the NDA please email me at email@example.com or call me at 303-382-1926. Thank you.
The trailing 12 months thru Aug 16 were 5.9M revenue with 528K in earnings. 2015’s revenues were 5,544,270 with adjusted earnings of 523K. The owner is mostly absentee working less than four hours a week. He says there are many ways for a new owner to grow and improve this business.
The buyer gets over 1.4M in current value assets. This is made up of 800K of new and used trailer inventory, 280K in parts and merchandise, along with another 380K in equipment including trucks, tools, machinery, forklifts, office equipment, software, containers which serve as yard storage, and additional equipment/inventory that they have not had time to add to their software system.
They are internet and reputation driven with a long-standing, diversified, and partially recurring customer base. They add hundreds of new customers every year!
Seller's Quote: "I have always been a home builder and started this business to keep busy when the housing market went out of favor and now that the housing market is active again, I am needed more than ever at my construction company. I have never been full time at the trailer business and have spent zero to ten hours a week there over the last three years as housing was recovering. I can't pay the attention to the trailer business that it deserves and have fallen behind on advertising, categorizing the parts and equipment, being present for loyal customers, managing the employees, and by taking advantage of growth opportunities. My real interest has always been racing cars and building things."
This is a "Fun" business to own that is growing nicely and the owner has identified several ways to add significant growth including adding a location, better organizing the yard and equipment, and by being more hands on in general which would help the business in many ways.
South Denver, CO
The seller is asking for 2.4MM for the business. He will carry up to 500K of that. He would prefer a stock sale for tax reasons and will be keeping his cash, AR, and AP which are not large balances and transferring the business debt free.
Brief Overview and Deal Points:
The buyer will step into a solid pipeline of recurring revenue which is a direct result of our great locations and operating model. "2016 should be a great year with all of the hard work of positioning the company both on the internet and in their region is now done at great expense", the owner states. In short, the seller is optimistic on the short and long-term prospects of the business and the opportunity to increase its growth and value.
They have a great reputation and the seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) and no legal battles and have a low MOD rate to prove this.
This business has grown from virtually nothing to 5.9MM in revenue over the last six years.
The owner is happy to sign a non-compete. He is willing to transition the business and wants the buyer to know that there are many qualified people that can help the new owner long after the transition also whom are loyal to the business. In fact, the business will not change on bit the day after the closing. He will be available for a longer period of time in an advisory position if the new owner wants him to.
They are the largest trailer dealer with the largest service and parts department in South Denver all the way to the border. They also rent trailers which allows them to purchase inventory and equipment at the best prices.
He has been through four managers in the last two years and finally found one who knows the business, can manage the employees, and is honest. He promoted him in June 2014 and is confident in his ability to manage the business. The new manager made changes including letting a couple of employees go and bringing in an another experienced mechanic. He believes that everything is in place now for the business to run itself and a new owner can come in and just focus on growth.
They have great mechanics whom are capable of all of the maintenance and customization needs of their trailers. Custom work helps them to generate additional high margin revenue but the main benefit is the loyalty and gratitude of the customers who keep coming back and sending other new customers. He has just finished reworking the sales department also per the new managers suggestions.
The business will transfer debt free. They are, for the most part, a cash/credit card business. They do have some charge accounts, but they have less than a 1% default rate. Theft of their equipment has been non-existent since they installed a sophisticated security system with multiple cameras.
The business has 19 trustworthy, competent, and reliable employees who love their jobs and will all stay after the transition. The manager is capable of running the business on his own but not growing it significantly. The business really could use a passionate owner to help with the sales or the management of the sales team.
The location was purchased by him in 2009. The land is located on one of Colorado's busiest roads which is 6 lanes across with high visibility. It is in the middle of one of the fastest growing areas in the country. The facility is 7,000 Square feet with 2500 sq. feet of showroom on 5.8 acres of property. The property is fenced, well lit, and they still have room for growth. He will lease the property for below market rate. He just had a full appraisal done in November 2014 for 3.2M. The appraisal is in the other section of the data room in the sales package and clearly states on page 28 that they are in a "redevelopment zone" which offers tax breaks, etc. for further development of the property. The appraised current value can’t take that into consideration because it is not how the property is being used. In other words, there is tremendous upside value to this property either right now for a developer if the buyer wants to move the business or over time based on its location. He will sell the property for 3.4M.
Growth and Expansion: "The company could grow faster by adding an additional location or by adding an outside salesperson and/or a sales manager/salesperson. The model that I have created can be immediately replicated profitably. Most growth plans have inherent risk but my model works. I know how to penetrate any market using my model which could be expanded nationwide. Trailers have always been popular in Colorado and I came in and took this business from almost nothing to $5.95MM in revenue in less than 7 years. In addition, we are seeing rental rates increasing and the demand for customization increasing as the economy is gaining momentum. This will allow a new owner to increase rates which I have not done."
Plus, Colorado is the best State in the country to own a business. Colorado is the "#1" fastest growing and strongest economies in the United States, per Money.MSN and Business Insider in September 2014 article. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports. Also, Area Developers Magazine ranked Denver the #1 growth opportunity in the country in June of 2015. Check out the article in this link http://www.bizjournals.com/denver/news/2015/07/15/denver-rated-no-1-in-u-s-for-economic-success-3.html?ana=e_du_wknd&s=article_du&ed=2015-07-18&u=Omt2yqM6WXrOzM+upNHZNw0a18034b&t=1437241801 and rated Denver #1 for leading locations for economic strength indicators and eighth for both workforce and recession-busting attributes: http://www.bizjournals.com/denver/news/2015/07/15/denver-rated-no-1-in-u-s-for-economic-success-3.html The Denver-Aurora-Broomfield metro area was rated first among the 375 metros. Here is Area Development's top 10 U.S. "Leading Locations" for 2015: 1. Denver. 2. Houston. 3. Grand Rapids, Michigan. 4. Greeley. 5. San Francisco. 6. San Jose. 7. Seattle. 8. Columbus. 9. Boulder. 10. Austin.
Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s). Thank you for your interest.
If you are NOT interested in this business for sale, but you refer someone to us who buys it and we collect the full commission, we will immediately pay you a referral fee of $3,000. Please send us anyone (or email this to anyone) who you think would be interested in this offering. Thank you.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
999 18th St Ste 3000
Denver, CO 80216
This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.
Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.
Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.
Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.
Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.
Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.
Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.
39 Yr. Old Denver-Based HVAC Company For Sale.
Last 5 year Cash Flow $240,000. Seller Will Stay on for Transfer. $165,000 in A
For Sale: Large Denver-Based HVAC Company (Since 1977)
The Sales Price of the company is $500,000, and the seller is open to carry $100,000 of the sales price to a qualified buyer. The seller will stay on for 3-4 months to ensure a smooth and orderly transfer of the entire company operations to the new owner and provide a solid blueprint and assistance for fast growth going forward.
2015 Cash Flow was $244,477 on sales of $1,063,925
2014 Cash Flow was 200,971 on sales of $1,175,728
2013 Cash Flow was $262,351 on sales of $1,138,469
2012 Cash Flow was $282,278 on sales of $1,143,482
2016 Cash flow is projected to be over $250,000 on $1,100,000 - $1,200,000 in sales.
The Bad News and Upside Growth Story: This is really a $3,000,000/year company that cash flows over $500,000/year. The business grossed over $3,000,000 until 5 years ago, this is when the CenturyLink (phone company) accidently crossed the company phone lines with another company and it took the last 5 years (believe it or not) to get the phones properly ringing again. See the video below detailing this history. Simply put, the company would have continued to gross over $3,000,000/year had the main phone line NOT been disconnected the past years. This issue has been completely fixed as of the past 6 months and the calls are now rolling in again. The seller has made absolutely NO efforts to grow the company in the past and is 100% confident that a new owner can get the business back to $3,000,000 or more with 2 years with new sales and marketing efforts.
The buyer will receive at closing all assets on the balance sheet and all debts will be paid off. Assets include about $100,000 in trucks, equipment, tools, office equipment, and another $65,000 in current inventory. This totals over $160,000 in assets.
The biggest and most valuable asset that is included in this transaction is simply the 25,000 to 30,000 customer contacts that we have in our database. This database is an absolute gold mine of customer names, phone numbers, addresses, emails, and comprehensive details on the jobs completed in the past. Many of these long-standing customers that we had done work in the past, have had us actually install and service HVAC equipment 2-3 times spanning the past 3-4 decades. They are loyal to us and trust our work and honest pricing. The new owner should immediately hire a new sales rep to be more proactive and reach out and contact these customers to see if they are interested in a free walk-through/consultation of their units. This alone WILL produce an immediate surge in gross sales and jobs to complete. The seller is 100% confident that gross sales and cash flow would increase 50%-75% within the next 12 months just by working from the top of the list and hitting just the first 2,000-3,000 past customers. At this rate, it would take 6-8 years to get to everyone. This of course is in addition to the sales growing now due to the phone lines being fixed for good.
Our prices are way too low. As mentioned below, or motto has always been, "honest work for honest prices". We have long known that our competitors, to a large extent gouge their customers and charge as much as 50% - 100% more than we do for the same job, simply because the homeowner is unknowledgeable about this industry, and is often gullible. That's why the industry sometimes has a bad name. We've always known that we charge too little compared to our competitors for given job. We would not see a reduction in customer loyalty whatsoever if we increased our sales 20 to 30%. This of course would increase our bottom line by 20% to 30% immediately for the same sales volume. As they say, "it costs nothing to raise your prices". In fact, we are quick to brag about the fact that 9 out of 10 of the people that we visit end up going with us. Also, of the 1 in 10 people that meets a competitor to get another estimate, for a given HVAC unit or water heater to replace, often find that our prices in the end were substantially lower than our competitor, and then they go with us anyway. By the way our "A+" BBB rating and NO COPLAINTS, (in an industry that can be riddled with complaints) speaks volumes about our low prices and awesome service/reputation.
No Sales and Marketing Efforts in the Past: Historically, we have always just waited for the phone to ring and then covert that to a sales call and then a job. We have never done any form of aggressive sales and marketing efforts. In fact, as mentioned above our phone lines have been completely disconnected for the last four and five years and that has been a devastating effect on our gross sales. Now that our phone lines are completely operable, a new owner can come in here and be more proactive with a wide variety of sales and marketing efforts like the items mentioned above in all of this could immediately double or triple the gross sales and quadruple the cash flow within two years the seller projects.
Wow!! After 39 years in business, BBB Accredited and “A+” rated. We have "0" unresolved complaints. Perfect Safety and Business Operation History: The seller is fully committed to sell all the assets of the business and will agree to full Reps and Warrantees to a solid legal and business standing. We have NOT had 1 client complaint in all years of operation that has not been resolved. We have a stellar track record of finishing jobs on time and on budget. We also have a perfect worker’s safety history without 1 workman’s comp claim in the past 10 years! We have the lowest insurance and workman’s’ comp rates available due to our “perfect” safety record. We also have a perfect OSHA and safety record. We have the finest reputation in the Denver Front Range area. No legal battles.
Please email firstname.lastname@example.org or call Paul at 303-382-1900 for a comprehensive sales packet with the past 3 years of financials and tax returns, and a detailed 30 minute video interview with the owner and a full site walk-through. We can immediately email the sales packet.
As stated above, the seller has made absolutely NO efforts to grow the company in the past and has been handicapped by NOT having functional phone lines during the past years until recently. He is 100% confident that a new owner can get the business back to $3,000,000 or more with 2 years with new sales and marketing efforts. In addition to new sales and marketing efforts the new owner would need to hire 3-4 additional technicians and installers to handle the workload. YOU MUST SEE THE 30-MINUTE-LONG VIDEO DETAILING ALL THESE POINTS. IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 5 YEARS OF COMPANY FINANCIALS.
We have been providing Denver with heating and air conditioning services since 1977. We offer a full range of heating and air conditioning services from installations to repairs. Our team here lives by the motto of honest work for honest prices, and we will never try to pressure our customers into any expensive products or services they don’t need, or don’t want.
Recession Resistant: Our industry to a large extent has always been somewhat recession proof. Unlike new home construction, which can rise and fall sharply with economic expansion or contraction, the HVAC industry has always remained relatively safe. People MUST have heat in the winter, and cool air in the summer. The comfort of the home is highly "inelastic", which is a fancy economic term that simply means you 'have to have it'. During the economic downturn turn peoples' willingness to buy a new home, buy a new car, or build an addition onto their house was impacted sharply. However, people's willingness to spend $2,000 or $3000 to fix a broken water heater, or HVAC unit remained intact. Moreover, these HVAC units have a limited lifespan. They need to be replaced every 10 or 15 years or so, especially given the tremendous use they get in Colorado with the extreme temperature swings from 70 degrees 1 minute, to 30 degrees 2 hours later. This is very taxing on thermostats and HVAC units in general. So there is a never-ending need to replace outdated or broken units. There is certainly a need to service them on a more frequent basis than in other states, and our technicians are well equipped to do everything in this area.
Why Choose Us? We have nearly 40 years of experience managing heating and air conditioning problems of all sizes. It doesn’t matter if you simply need to get a filter cleaned out or if you want to install a brand new efficient furnace and smart thermostat, we can do it all. On all new installs one of our experienced technicians will personally come out to your home and provide you with a completely free estimate for the installation. As one of the few Denver HVAC companies still owned and operated by its original founders, we know just how important each and every customer is. Without you the customer we wouldn’t be able to do what we love, because of this we guarantee that we’ll never try to pressure you into expensive parts or services that you don’t really need or want.
Air Conditioning Services:
Coils: Sometimes coils get damaged, it can be a rock, a weed eater, or maybe you’re just mad at the world and decide to give your AC coils a good kick. No matter what the problem is the professionals at Sanders & Johnson have probably seen it before. Give us a call today to see how we can repair, clean, and restore your air conditioning coils back to their former glory.
Compressors. Without a compressor an air conditioner is pretty much a big fan. Your compressor does exactly what it says it does, it’s in charge of compressing your coolant and creating cold air. Any number of things can go wrong with a compressor, so make sure to call your trusted Denver HVAC professionals.
Coolant: Have you noticed your AC isn’t blowing as cold as it used to? You could have a coolant leak, or just need to recharge your system.
Ductless Air Conditioning: Old houses are great, they have character and tell a story that you just don’t get with a new home. The problem is a lot of older homes don’t have the room for expensive ductwork because they were created before air conditioning was the standard. Luckily with Ductless Air Conditioning you can put cold air wherever you want it. Not to mention you can get rid of those loud ugly window units.
Thermostats: The thermostat is what allows you control the comfort level inside your house. Without a thermostat your Air Conditioning or Heat would just sit there and run all day. We are experts in Heating and Air Conditioning and can walk you through all the nuances that come with a new thermostat.
Heating Service & Repair: We provide a number of different services to keep your home nice and toasty all winter long. Did you wake up with frigid water this morning? We can help that as well.
Furnaces: A furnace is an incredibly valuable piece of modern living. It’s one of those things you don’t realize just how much you use it until you’re left without one. If you find that you’re stuck without a furnace this winter, or you just want someone you can trust to come out and take a look at it.
Water Heaters: Did you wake up this morning, only to jump into what you thought was going to be a steaming hot shower? Maybe you’re just looking to switch from a traditional water heater, to a more efficient tankless water heater. The professionals at our office can walk you through the entire process beginning to end.
Boilers: Your boiler is a vital part of your home, and when you’re left without one it can make things pretty miserable. Fortunately your hometown heating and air conditioning experts know boilers like the back of their hands. Next time you need some help with the boiler make us your first choice.
Air Quality Control: A house that is too dry can wreak havoc on your skin and your belongings. With a wide selections of Honeywell humidifiers and dehumidifiers we can return your home back to the way it should be. So if you’re tired of your skin cracking open every winter call us for a free installation estimate.
Ductless mini-split heat pumps: A mini split heat pump allows you to delay the expensive furnace bill. If you’d like to know a little more about how a ductless mini-split heat pump can help you call the professionals. We’ll never pressure you into something you don’t want, or don’t need.
Amana offers a wide range of both heating and cooling options for your home. From their legendary furnaces, to that icy cold blast from their air conditioners, when you purchase an Amana you know it’ll last for years to come.
Bradford White is the industry standard when it comes to gas water heaters. The only way you can get one of these legendary water heaters is through your licensed heating and air conditioning technician. Call the experienced licensed professionals our office for Heating and Air Conditioning today for your very own Bradford White hot water heater.
The Burnham Alpine hydronic boiler is simply on of the best boilers on the market today. With their stainless steel heat exchanger you can rest assured knowing that your boiler will continue to deliver toasty temperatures all winter long and for years to come.
Fujitsu’s ductless air conditioning and heat pumps provide targeted cooling exactly where you want it. With their mini split AC and heat you can avoid the hassle of expensive ductwork, and take your windows back from those ugly window units.
When you’re looking for a reliable air conditioner or furnace that isn’t going to cost you an arm and a leg then Goodman could be the choice for you. This AC company was created in the furnace that’s called Texas so they know a thing or two about trying to stay cool.
Having a house that’s too dry can be brutal on your skin, causing your knuckles to crack and bleed. No one wants to go through this and with Honeywell you don’t have to. Their line of whole home humidifiers and dehumidifiers will keep your home at the perfect humidity level. Looking to save some money on your bill? A Honeywell smart thermostat can help with that. It’ll learn your usage habits so that heat or AC aren’t going full blast when no one is even home.
With the Rinnai tankless water heater you’ll never have to worry about if you’re going to get a hot shower after everyone else. Although that is reason enough there are other advantages to having an instant water heater. With the Rinnai tankless water heater you’ll save money every month because you don’t have to constantly heat the water up you’re not using.
Denver Colorado is fastest growing city in the US.
Colorado is the best State in the country to own a business and is the "#1" fastest growing and strongest economies in the United States, per Money.MSNand Business Insider in September 2014 article. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports. Also, Area Developers Magazine ranked Denver the #1 growth opportunity in the country in June of 2015. Check out the article in this link http://www.bizjournals.com/denver/news/2015/07/15/denver-rated-no-1-in-u-s-for-economic-success-3.html?ana=e_du_wknd&s=article_du&ed=2015-07-18&u=Omt2yqM6WXrOzM+upNHZNw0a18034b&t=1437241801
Denver is #1 for leading locations for economic strength indicators and eighth for both workforce and recession-busting attributes: http://www.bizjournals.com/denver/news/2015/07/15/denver-rated-no-1-in-u-s-for-economic-success-3.html The Denver-Aurora-Broomfield metro area was rated first among the 375 metros.
Here is Area Development's top 10 U.S. "Leading Locations" for 2015: 1. Denver. 2. Houston. 3. Grand Rapids, Michigan. 4. Greeley. 5. San Francisco. 6. San Jose. 7. Seattle. 8. Columbus. 9. Boulder. 10. Austin
Please email email@example.com or call Paul at 303-382-1900 for a comprehensive sales packet with the past 3 years of financials and tax returns, and a detailed 40 minutes video interview with the owner and a full site walk-through. We can immediately email the sales packet.