CO Mtns Largest Event Rental Co, 427K Earnings, 1.5M in Assets
Event Rental, Largest in CO Mtns, 427K Earnings, 1.4M in Assets
The sales price was just lowered to $1.9MM. The revenues grew again but there was a temporary drop in the earnings because they moved locations last year into a larger more efficient location which was very distracting and cost them a lot of time and money. This has created a short term opportunity for buyers. He expects 2016 to resume the fast growth on both the top and bottom lines of this company.
Colorado Mountains Largest Event Rental Business
The trailing 12 month revenues through February 29, 2016 were $1,532,242 with adjusted earnings of $427,105. The 2015 revenue were $1.46M with adjusted Earnings of $381K.
The market for their business is expected to continue to grow long term based on the increasing popularity of the mountain resorts and towns. These areas used to be mostly skiing and destination weddings. Now the numerous mountain towns compete weekly for tourists and locals hosting food, beer, and wine festivals, BBQ and Chile festivals, international sporting events, golf tournaments, trade shows, ski and snowboard competitions, biking and endurance competitions, conferences, artists shows, outdoor bands, plays, snow sculpture competitions, retail sidewalk sales, and parties, etc. The destination wedding market is still continuing to grow year around. During the summer fifteen years ago, a resort town may hold one event a weekend, now they may hold four or more in addition to the increasing number of weddings and parties. Plus, the mountains have continued to grow in popularity and population. The construction of new hotels in the mountains is at its highest rate ever which means more future growth. With this comes increasing amounts of events that are in need of tents and complete party rentals for their event. The Denver event rental companies focus on event planners while this company focuses not only event and wedding planners but also on the repeat events. Most events require a tent and a heater which are high margin rentals. They have the equipment, solid relationships, and a location to continue to grow.
The current value of its equipment and inventory is $1.5M which is made up of $1.25M in rental inventory and another $250K in supporting equipment. The value of their assets, client relationships, and earnings are the reasons that it makes no sense for anyone to start an event rental company from scratch and is a barrier to competition. There is very little competition in the mountains in general because of the expense and scarcity of warehouse space.
They have many well-known and long-standing customers from a diversified customer base that send them business every single year creating a strong base of recurring revenue. They have the largest inventory in the mountains especially for tents including many one of a kind items that make them the best choice to supply many of the events that take place every weekend in the mountains.
This business is well positioned to continue its growth. They have a great model, staff, equipment, location, relationships, and reputation. The future growth of this business is very predictable long term.
Location: Central Colorado Mountains
The non-disclosure agreement link is: 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(browser) and it will give you the NDA. Please fill it out and send it back to automatically request 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 Confidentiality Agreement (CA). If you have any questions or comments on the CA please email me at firstname.lastname@example.org. Thank you.
The sales price is $1.9M. The owner will be keeping his cash, AR, and will pay off all debts including the AP transferring the business debt free. The owner would like a $1.5M down payment at the closing on the $1.9M total sales price. There is a scarcity of large business in the mountains especially ones with a location that is in the middle of the mountains with big upside potential and a reasonable lease. Big business in the mountains have a natural barrier to competition and sell for multiples above what you would normally find. In addition, this business has a 33% net profit margin which means that new growth will be very profitable to the new owner.
Brief Overview and Deal Points:
Please view the video walk through in the sales package which you will be sent after completing the Non-Disclosure in the link above to appreciate the quality and amount of their equipment and inventory. Keep in mind that the $1.5MM in equipment and inventory is valued at half of what it cost new. They have $2.8MM in original cost that would make this business impossible to start from scratch. They have a very large quantity of high quality rental items including event tents and canvas that are the most valuable pieces of any event rental companies inventory. They use the top end lines of Anchor including Century, Navi-Trac frame tent system which helps to set them apart and they last for a long time. All outside mountain events need tents for either keeping warm in the spring, fall, and winter and to protect against the changing elements all year round. Even if the weather turns out fine and a tent is not needed. Events are required to put down a 50% non-refundable deposit unless it is canceled 180 days from the event to reserve a tent in case it is needed (they won’t know the weather will be good enough to not need a tent 180 days out). They make a lot of money off of tents, heaters, and flooring for tents being in the mountains. It is a very high markup and this is why their profit margins are much highe427K on $1.53M in revenue which is another reason that it is so valuable. That is a 28% bottom line. High margin companies and industries carry higher multiples because you make more money off of every new dollar of future growth.
They have many letters from happy customers and people that refer them business. They have a perfect reputation and have an A+ rating with the BBB. The seller will agree to full reps and warranties to a solid legal and business standing. They have less than a 1% default rate partially because they have most customers pre-pay for their rentals. They also charge a 9.5% surcharge which is required on all rentals which is intended to protect them from breakage and help keep the inventory refreshed. They also get 50% down on all rentals and get the other 50% ten days before a job is due to start. All deposits are only refundable if the reservation is canceled 180 days in advance.
The owner is selling because he is hands on and wants to spend more time with his family including travel. He will sign a non-compete. He will help in the transition the business and stay on for as long as the new owner would like him to.
They are full service with a full line of products from the very highest end to the low end and everything in between. They also triple check all orders before they are delivered to a client. You will see the equipment that they have and the inventory they provide in the video walk through of the facility. They put an emphasis in maintaining the rental equipment. Great care and attention is given to each piece of inventory and equipment after it is returned from a rental. He has learned that the better your equipment looks and works, the better their customers treat it and the more likely they are to recommend them and come back.
The business will transfer debt free with all liabilities on the balance sheet paid at or before the closing. The seller will be keeping the collectible accounts receivables and cash.
They have 3 salaried and commissioned managers excluding the owner and between 24 and 7 crew depending on the time of year that are paid hourly. The staff has proven to be trustworthy, competent, and reliable employees. His main salesman left and moved out of state last fall which will have no negative impact on the business and will in fact save the company approximately $30K per year going forward based on the aggressive compensation package that he had. The owner is very happy with his current sales team and feels confident that they will take this company to the next level. The hard work is now done after the move last summer, the new marketing magazine, etc.
The company just moved in June to a 7369 Sq. foot facility that is located on .87 acres. It has ample parking, a spacious showroom, customer pick up area, reception area, private offices, conference room, ADA approved bathrooms, sprinkler system, truck bays, dish washing area, energy efficient lighting, and 2 apartments that can be used by the owner or given/rented to employees with a separate entrance than the business for both. The lease will be at a market rate for the area. The rent will be slightly higher but the apartments will come with it and should easily make up for the difference. The new location will also have room for growth, be more secure, more efficient, and allow for both employee and customer parking(the were spending $100 a month to pay for an offsite lot for their employees to park in before). Plus, they get to consolidate 3 separated storage facilities and the separate big tent storage facility into one location which will more than pay for itself in greater efficiency.
Growth and Expansion: The owner just added a third commission based sales person with the goal of reaching $1.8MM in revenue this year. This was done to focus on other resorts and towns within the same sphere. They have an advantage over the other event rental companies because of their size, location, and inventory. Also, the new owner should improve their online presence by spending money on search engine optimization and by adding landing pages for people searching for their services. They currently have only a single webpage that is not properly optimized.
Plus, Colorado is the best State in the country to own a business. Colorado was the #1 fastest growing and strongest economies in the United States, per Money.MSN and Business Insider per the September of 2014 issues. This 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.
For 20 Years, We Sell Businesses "Quickly and Quietly"
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.
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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.
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Oxi Fresh Carpet Cleaning Franchise
Phoenix Metro West Valley Established Carpet Cleaning Business
West Valley Oxi Fresh is a franchised carpet and upholstery cleaning service that offers a new innovative way to clean carpet. It is eco-friendly, energy and water efficient, and customer-friendly because of its fast, one-hour dry time, soft drying with no crunchy residue, and non-toxic cleaning agents that are safe for children and pets! West Valley Oxi Fresh services three districts in the west metropolitan area of Phoenix, comprising 508,000+ homes. We are part of the award winning Oxi Fresh franchise, which currently has over 204 operations in 40 states and Canada. Using Oxi Fresh’s proven product, marketing program, and operations model, success has been extended to the Phoenix west metropolitan area.
West Valley Oxi Fresh uses a proprietary method for deep carpet cleaning that unleashes the power of oxygen, which crystallizes dirt particles, separating dirt and stains from the carpet. Twin rotating brushes reach the bottom two thirds of the carpet pile, giving superior results all with lower energy usage and no harmful chemicals. Oxi Fresh provides a national call center to all owners, which handles all the job bookings, database, and day to day managerial information other than bookkeeping.
As a Franchisee, West Valley Oxi Fresh receives protected territories, comprehensive training and support, and a powerful marketing program that has a proven track record. All marketing materials are professionally designed, printed and provided as part of the marketing package. Marketing tools include a professional company website, online web advertising, direct marketing using direct mail, door hangers, Yellow Pages, and professionally created advertising campaigns. Using Oxi Fresh’s database, we target homes with values of $100,000 or more.
West Valley Oxi Fresh provides the future in carpet cleaning services along with upholstery and grout cleaning. The new proprietary method used in our Oxi Fresh carpet cleaning system exceeds the industry standards. There are no sticky residues left in the carpet that can actually attract more dirt in the future. The average drying time with Oxi Fresh is one hour. The average competitors’ time for drying is between six and twenty- four hours. Our service is all-natural, eco-friendly, and healthier for the residents and pets.
Our three part cleaning solution includes an “Oxi Sponge”, Encapsulator and a specially formulated Oxi powder. This three- part cleaning solution creates a powerful oxygenated cleaning system that breaks down the stains while encapsulating them, so that they can be effectively removed from the carpet pile. Our system uses much less water than a typical truck mounted steam cleaning system, which allows the carpets to dry in a fraction of the time.
Oxi Fresh is a chemical free, all natural way to clean carpets that is safe for children and animals. When Oxi Fresh is finished cleaning the carpets there is no remaining residue that can be harmful to children and pets. Traditional steam cleaning leaves a substantial amount of moisture in the deep fibers of the carpet which can lead to mold and mildew. If the carpet is not dried correctly the mold can be hazardous to one’s health. Oxi Fresh uses a limited amount of water that practically eliminates the possibility of mold and mildew.
The Oxi Fresh Franchise operates a call center used for all franchisees for scheduling. The local number provided through our marketing will be directed to the call center in Denver, CO. The professional call center is staffed with knowledgeable personnel that describe the service completely while answering any questions the customer may have. The call center employees also have information on all other services proved by Oxi Fresh. With the professional call center in place there is no need for West Valley Oxi Fresh to hire a secretary to answer the phone. The jobs are scheduled by the call center and added to the manager’s back office through the Oxi Fresh web page.