Seller Financing Available
CO's largest trailer dealer/rental Co. 4.5M Rev, 470K in Adj EBITDA
Denver Trailer Dealer, 4.6MM Rev, 470K adj EBITDA, Absentee Owner
Denver County, CO
Selling for less than 2 times earnings and you get an estimated $400K in current value equipment!
The 2013 adjusted EBITDA was $470,596 on $4,591,674 in revenues. The owner is mostly absentee and there are many ways to grow this business and to add locations.
The sales price is $900K and the buyer gets an estimated $400K to $500K in equipment including trucks, ATV’s, tools, machinery, forklifts, significant leasehold improvements, office equipment, merchandise, containers which serve as yard storage, and additional equipment that was recently purchased that they have not had time to add to their system(balance sheet). You must send in the NDA to see the video walkthrough of the assets of this business. The inventory is extra and can be bought at the sellers cost for the new dealer inventory that is there and a discount on all parts and used inventory which totals approximately $1.4MM. He will liquidate whatever inventory you don’t want before the closing. The total sales price with the necessary inventory is $2.2MM which is below the 2X earnings plus the current value of the useful inventory with the equipment included.
They are internet and location driven with a long-standing, diversified, and partially recurring customer base. They have a great location that draws walk in business. They add hundreds of new customers every year!
Seller’s Quote: “I have always been a 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 only 10 hours a week there over the last 2 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.
The seller is asking for $900K plus inventory. You could not start this business from scratch and be better off under any scenario. He is in a hurry to be able to focus full time on his construction company. 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. Companies that have a high market value to the assets compared to the sales price always deserve a high premium to earnings.
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.
Brief Overview and Deal Points:
The buyer will also step into a solid pipeline of recurring revenue which is a direct result of our great locations and operating model. “2014-2015 should be great years 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 bullish on the short and long-term prospects of the business.
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 $4.5MM in revenue in 5 years. He can teach the new owner how to do this anywhere if he wants to expand.
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 longer in an advisory position if the new owner wants him to.
They are the largest trailer sales, service, and rental companies in Colorado which allows them to purchase inventory and equipment at the best prices. This helps them to buy the equipment at the lowest prices available anywhere.
He has been through 4 managers in the last two years and finally found the one he needed who knows the business, can manage the employees, and is honest. He permanently hired him in June 2014 and is 100% confident in his ability to grow and manage the business. The new manager is already making big changes including letting a couple of employees go and bringing in an another experienced mechanic. The owner is so excited about this that he almost took this off the market. They have great mechanics whom are capable of all the maintenance and customization needs of their trailers. Custom work helps them to generate a lot of extra profitable 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 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 surrounded by one of the fastest growing areas in the country. It is 7,000 Square feet with 2500 sq. feet of showroom on 3 acres of property. The property is fenced, well lit, and they still have room for growth. He prefers to sell the property to whoever buys the business at the same time. He will sell it for the appraised value which he believes is between $3.2MM and $3.3MM. Please fill out the NDA to see a video walkthrough of the land and facilities. There is substantial room for improvement in how the land and building is being utilized. A two year lease with a first right of refusal for the buyer is possible also.
Growth and Expansion: “The company could grow faster by adding an additional location or by adding an outside salesperson. The model that I have created can be immediately replicated profitably. Most growth plans have inherent risk buy 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 dominating the market in less than 3 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.”
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 $5,000. 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