Seller Financing Available
CO Trailer Dealer/Rental Co. 4.8M Rev, 453K Adj EBITDA
Denver's Largest Trailer Co, 4.8M Rev, 453K Inc, Price Reduction
Lowered price to $1.75M. Revenues were up 7% in 2014 and they increased the bottom line also. The owner had previously lowered the sales price from $2.4MM to $2.1MM and has agreed to lower it again to $1.75MM for the business or $5MM for both the business and the land. January 2015 was much better than January 2014 so the trailing 12 months is already above both the year end $4.83M in revenues and the $453K in adjusted EBITDA. The owner is absentee and he believes that a new owner would make a big difference.
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 firstname.lastname@example.org or call me at 303-382-1926. Thank you.
Denver’s Largest Trailer Sales and Rental Store
2014's adjusted EBITDA was 453,286 on 4,827,716 in revenues which was 7% revenue growth over 2013. The owner is mostly absentee working less than five hours a week. He says there are many ways for a new owner to grow this business.
The buyer gets $1.84M in current value assets. This is made up of $1.15M of new and used trailer inventory, $191K in parts and merchandise, along with another $495K in equipment including trucks, ATV's, tools, machinery, forklifts, office equipment, software, containers which serve as yard storage, and additional equipment/inventory that was recently purchased that they have not had time to add to their software system. Please click on the NDA link below to see the video walk through of the assets of this business. Please click on the NDA link above to get sent the sales package with the video walk through of the assets of this business.
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 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 two 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 1.75M for the business or $5M for the business and the land combined. 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 except for the $600K in floor planed inventory that the new buyer will have to pay off or take over.
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. "2015 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.
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 4.8MM in revenue over the last five 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 longer in an advisory position if the new owner wants him to.
They are the largest trailer dealer with the largest service and parts department on the front range of Colorado. They also rental trailers 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 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 has already made 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 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 with the exception of the $600K in floor plan financing that a buyer will have to qualify for and assume at the closing. 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 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 is 3.3MM. He just had a full appraisal done in November 2014 which took a month. 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. King Soopers is developing an area just to their north and all of the land that was available around them has been bought over the last two years. This is a dual opportunity based on the upside potential of the land also. There is substantial room for improvement in how the land and building is being utilized.
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 dominating the market in less than 4 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.com and Business Insider. The article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports.
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
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.
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Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.