Denver County, CO Towing Companies For Sale

Back on the Market: 45 Yr Old Heavy Vehicle Towing Co90% Recurring Rev, Long Term Relationships, Big Growth Potential
$1,500,000 Cash Flow: $292,000 Seller Financing
Back on the Market: 45 Yr Old Heavy Vehicle Towing Co90% Recurring Rev, Long Term Relationships, Big Growth Potential

Denver County, CO

Heavy Vehicle Towing & Recovery Company. Location: Greater Denver Metropolitan Area This company had been under a Letter of Intent for 4 months now and is now available again. The buyer lost some of the financial support that they were counting on and therefore the bank asked the Seller to carry more which she would not agree to. I have reason to believe that it will be back under contract for $1.5M within 10 days. In other words, I expect offers quickly based on the level of assets and potential upside of this business. I am not trying to get into a price war and frankly believe she is happy at $1.5M. It is my opinion she wants to also find the best custodian of her business possible. She is very close to the employees and wants to make sure she makes the best choice. The properly adjusted earnings for 2017 were 292,275 on 1,696,061 in revenues. 2018 is growing based on the long term relationships they have with long standing customers and companies. This is a unique opportunity because they are being offered at a sales price that is less than the current value of their Assets. This company has approximately 1.575M in Assets made up of 1.315M in tow trucks and vehicles and $260K in FF & E that includes a large amount of tools and other equipment. Typically companies with 100% of their sales price in current value assets especially assets as valuable as heavy tow trucks sell for 5 times earnings. The sales price was just lowered to 1.5, this is now priced at 100K under the current value of the assets. It is rare to buy a successful, growing, and profitable 45 year old company for less than the value of its assets. It takes many years to build up that much capitalization. This company has the assets to grow and put money into the new owners pocket. This company has been recession proof. Their earnings did not drop during the 2008 to 2012 downturn. The company has some seasonality based on weather especially extreme heat, cold, and snow. The company has a very up to date fleet of 8 Heavy Wreckers and flatbeds, including several purchased within the last 5 years. The wrecker/flatbeds were valued at $1.4M by a 3rd party in late 2016. The owner works 50 hours a week dispatching, ensuring customer satisfaction, and doing the bookkeeping/payroll. The owner will be available to help in transition and consult longer term. The company has many long standing relationships and profitable contracts in place that generate recurring revenue. The customer list is very large and includes many nationally recognized household names. They are licensed in all 50 states. They have 11 long term employees. Their newest driver was hired 6 years ago and have a driver manager that has been there 17 years. All of their drivers have at least 15 years of experience. All drivers are full time, working 5 days a week, and earn a 25% commission. Their main administrative employee has been there 20 years. They also employ a part time mechanic and an office manager that helps the owner with dispatching and bookkeeping. Dispatchers are paid hourly. This company does not have issues hiring or keeping employees. Location: Greater Denver Metropolitan Area ______________________________________________________________________________________ The offering price was lowered to 1,500,00 from 1,590,000. This is selling for less than the current value of the assets. The owner will be keeping her cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. This is an S Corp and the Seller prefers a “Stock” sale and will offer indemnifications. ______________________________________________________________________________________ Additional Deal Points: This company has a great reputation for service, safety, quality, and reliability. They currently have an A+ rating with the Better Business Bureau. They have a great record for safety (OSHA) as proven by their low workman’s comp MOD rate of .74 which saves money on insurance. It is one of the lowest rates I have ever seen. There are no regulatory issues and have all of the appropriate licenses and permits required by the Federal Government, cities, counties, or municipalities that they work in. They run apportioned license plates on all vehicles and are licensed throughout the continuous United States. The company is a current member with the Colorado Motor Carriers Association and Towing and Recovery Professionals of Colorado. They also offer 24/7 service from a live dispatcher. The seller will agree to full Reps and Warranties to a solid legal and business standing. Growth and Expansion: There is a huge opportunity for growth with this company. A buyer could hire a sales person and better maintain/optimize the web site. Mailing brochures has been successful in the past also. They have historically grown by word of mouth and referrals which is based on providing great customer service. Recurring business is almost 90% of their revenues which comes from reoccurring business from current customers and is very valuable to a new buyer. Plus, they could also do more advertising and have a better online presence. This company will not change the day after the closing. The phone rings all day long. The owner will sign a non-compete, is willing to transition the business, and can teach the new owner how to run the business and how to grow it. Industry experience is not necessary. There are no required licenses that the owner needs but the owner recommends that the owner eventually takes all of the certification classes. The owner believes all employees will stay but can’t guarantee anything. The owner is selling because of a desire to retire and get out of the city, has been in this industry for 28 years, and is ready to slow down and enjoy retirement. The business has very loyal and long term employees. All drivers are required to be wreckmaster trained, hazmat certified, flagging certified. Drivers must also be certified in custody and control procedures, CSP Abandoned Vehicle Training, and Wes Wilburn Heavy Duty Vehicle Recovery. All employees are randomly drug tested and annually submit to background checks. There are currently 11 employees which is made up of 7 drivers, 3 dispatchers with one also being the office manager, and a part time mechanic. The employees are all hourly which keeps fixed costs in line with revenues. The employees are trustworthy, competent, and reliable especially being on call 24/7. They treat their employees well because they are the best in their region and they trust them to handle all aspects of a job. The property is leased which can be easily taken over or extended. The building is custom designed for the business. It is fenced, and has room to park all of their tow trucks inside during the winter. It has 2 offices with extra room for the business to grow into. The lease is 6,000 per month and expires in October with an option to extend. It will not be a problem negotiating a new long term lease for the new owner. 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 and rated Denver #1 for leading locations for economic strength indicators and eighth for both workforce and recession-busting attributes: 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 _______________________________________________________________________________ Financial Information: Asking: $1,500,000 for 100% of the business. Please Email or Call for Information: or call Jeff Chapman any time at 303-905-7607 to discuss your interest in this offering. If you are NOT interested in this business for sale, but you refer someone to us who buys it, we will pay you a referral fee of $3,000 when it closes and broker is paid his full commission. Please send us anyone who you think would be interested in this offering. Sincerely, Jeff Chapman Eisnaugle Company Broker Group, LLC. 303-905-7607 Direct 303-284-7025 Main 720-524-6482 Fax 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. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you have received this e-mail message in error, please reply to the sender and delete it from your computer. 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.

Become a Premium Member Today!