Garfield County, CO Heavy Construction Businesses For Sale

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W CO Medium/Heavy Equip Sales/Rental, NEW LOWER PRICE
$2,650,000 Cash Flow: $636,000 Seller Financing
W CO Medium/Heavy Equip Sales/Rental, NEW LOWER PRICE

Garfield County, CO

13 Year Old Medium/Heavy Equipment Sales and Rental Business The business is down in overall revenues and earnings through October of 2017 because the owner is semi-retired, spends over 4 months a year in Alaska, and the oil and gas industry has not recovered yet in Western Colorado. The owner has agreed to adjust the price of this Company to the current value of Equipment and other assets. The owner is retirement age and wants out. Considering the current earnings, we have lowered the sales price to 2.65M which is made up of 2.21MM in Heavy Equipment and Rental inventory and approximately 200K in smaller equipment plus other assets totaling almost 2.65M. The normally adjusted EBITDA were both 636K for 2016 and for the 9 months through Sept of 2017. This company did 22M in revenue with over 4M in earnings in the mid 2000’s and was probably worth around 15M. If oil and/or natural gas recovers, it should do it again but in the meantime, there are several ways to grow this business from where it is today. Natural gas prices have firmed up to the point that activity is starting to increase again in their area with the drilling of more than 100 new wells over the last 18 months. This could lead to an upturn in business. Plus, there is a lot of construction taking place around them that the new owner can rent equipment for after hiring a sales person. In fact, they are the closest large equipment rental/sales company to the 50 mile long roaring fork valley that extends from Glenwood Springs all the way to Aspen where there is a lot of construction taking place. Permits are running at an all-time high. The current owner does not have an outside sales person and focuses on Oil and Gas. This company has never had a lower sales price. There is no better time to buy this company than right now. 2018 could start seeing a positive turnaround because Trump has indicated that he will support building pipelines, expanding production, and exporting oil and natural gas which means that the Jordan Cove Natural Gas exporting proposal is being looked at again. This project would provide a pipeline straight from western Colorado to Oregon to be able to export natural gas. Rifle Equipment is the best positioned equipment company if this were to happen. WESTERN CO HEAVY EQUIPMENT RENTAL AND SALES CO. 2016 had 4.6M in revenue with 636K in normally adjusted EBITDA. The year to date revenues through September 30th of 2017 were 2.7M with 636K in normally adjusted EBITDA. He is motivated to sell because of a health issue and we have lowered the price and am offering a flexible way for a buyer to do this now. There are approximately 2.65M in current value assets which is mostly heavy equipment. He will allow a buyer to purchase with the following terms: 750K down payment as part of a total price of 2.65M debt free if the Seller remains in a first position on the business and assets. The buyer also has the option of exploring an asset backed loan for this purchase which would put the owner in a 2nd position and would require at least 1.75M in down payment. The owner will be flexible to help a buyer figure out a way to make this happen. He could even further reduce the inventory and sales price if the buyer requests this. Many long-standing customers with big names along with hundreds of other long term customers has resulted in a high percentage of recurring business. He is an old school personality and relies on their location and relationships. Equipment companies are typically “Fun” businesses to own. The owner spends 19 weeks in Alaska mining gold during peak season every year. This negatively impacts the bottom line by at an estimated 250,000 to 400,000 dollars a year which means they should have made at least 900K last year. In fact, he takes 22 weeks off a year. Please click on the link above to be able to see the video interview with the owner for his explanation. He controls the checkbook and therefore the inventory his sales person has to work with is decreased while he is gone. This was a huge issue in 2012, 2013, 2014, 2015, 2016, and now 2017. A new owner will be able to grow this company by just being there and/or by hiring a full time outside sales person. Location: Western CO just off of I-70 _____________________________________________________________________________________ The seller seeks 750K down as part of a 2.65M total sales price based on current assets or he can liquidate more equipment pre-closing lowering the price to as low as 2.2M. Recurring revenue always deserves a premium and this company has a high percentage of recurring revenues based on its location, customers, and reputation. He will adjust the inventory just before the closing to where the total value of the assets will match the sales price and reduce the overall inventory per a buyers request. 100% of the sales price will be covered by the current value of the assets. This can be either a stock or asset sale. It is priced as a stock sale with the owner keeping his cash and collectable AR while paying off all of the debt. He is open to a 338H10 program which allows for a stock sale for the Seller while being an Asset Purchase for the Buyer at the same time. There are many reasons this might make sense. _____________________________________________________________________________________ Brief Overview and Deal Points: This is an equipment, truck and trailer sales, customization, and equipment rental business that sells/rents to construction companies, energy companies, ranchers, and developers. They can find, customize, rent, or sell anything a buyer would need at competitive pricing with good margins. They are the only medium to heavy equipment sales and rental company for 40 miles in every direction in the heart of Western Colorado’s energy development, Colorado’s ranching, and fast growing mountain towns. Oil and Gas production dropped substantially in the late 2000’s and has still not recovered but new natural gas wells are still being drilled and there are several reasons to believe it should start improving again. The buyer will also step into a solid pipeline of recurring revenue because of their operating model and location. The company has below average overhead for their size and has relationships with some suppliers that allows them to carry some inventory on consignment which frees up working capital and saves them money. They also have a semi exclusive relationship with Dragon which is a subsidiary of Ranco and supplies oil field equipment. They are 15 years old and have the biggest name and the finest reputation in the region. The company is a S Corp and they would prefer a Stock Sale. A Stock sale makes sense based on the contracts they have in place with both customers and vendors and that they don’t have a lot of exposure to liability. The seller will agree to full reps(indemnifications) and warrantees and further guarantee a solid legal and business standing. In fact, the seller will offer a full “right to off-set” against the sales price for any liabilities that originated before the closing. They also have a great record for safety (OSHA) and no legal battles. The business was started from scratch by the current owner who owns the land and built a custom building in 1999. He will sign a non-compete. He will offer a full time transition and stay on part time if the new owner wants him to. He says a buyer does not need any special skills because he can teach him/her what they will need to know to grow the business. They are the largest independent sales and rental company in their area and are an exclusive dealer for a lot of the equipment that they sell/rent. The company offers the best maintained equipment and has long term relationships with most of the area’s largest companies. They know their customers need reliable equipment and have the finest techs and mechanics in the region. It took years to train them and they treat them well. They can buy the equipment so inexpensively that they can actually rent it for years and in some cases still sell it for close to their original purchase price. Their most profitable sales begin with a rental that a customer ultimately buys. The owner states “We are one of the only Dragon dealers in Colorado and have permission to sell where ever we want to, we sell into Utah, Wyo, SD, ND, Idaho, NM, Neb, KS. We are also the exclusive the Ranco dealer on the Western Slope, the Eager Beaver dealer for Colorado, NVE(vacuum pumps) dealer for Colorado, a dealer for Nuttall trailers, and Hyundai large equipment. We buy directly from Wacker, Genie, MMD(air compressors), Hustler mowers , Pro Tech truck accessories , and Vibrotech screens. We are what Peterbilt calls a MAPP dealer for parts, main reason we deal in PACARR trucks, Pete & Kenworth and can provide parts and service at a reduced price because of this and are starting to get the word out.” We have 4 Main Revenue Areas: 1) Equipment Rental - They have hundreds of pieces of equipment that they track how often they are rented and keep them maintained accordingly. They sell/rent/customize trailers, most Caterpillar Equipment including 3 D-8’s, Sakai compactors, Hyundai, Wacker light towers, generators, Genie Man lifts, Vibrotech screens, fracking trailers, etc. 2) Sales – The company has dealership status with several big names and they also buy, fix up, and resell equipment. This is an area that can be greatly improved with the owner out of town 19 to 22 weeks a year. 3) Service – They provide long term service for the equipment that they sell with is an area that can also be expanded to other equipment. The owner has considered being a tire dealer and offering a mobile service for both tires and on site equipment service and repairs which is a big and very profitable need for his customers. 4) Customization – The oil industry in particular has special requirements that they are uniquely able to fulfill. They get orders to customize trailers for specific jobs that their regular customers need. This is high margin work that really increases dramatically when the energy companies are expanding their production which they are starting to see again. “We have the finest employees anywhere. We have 6 employees that are capable of running the business on their own and are all trustworthy, experienced, loyal, and will all stay after the transition. This company is located in a beautiful and very moderate weather part of the Colorado with over 300 days of sunshine per year. This area is obviously growing with a brand new hospital, high school, hotels, theater, shopping, etc. They recycle oil which is either from their equipment or from a service they offer that allows customers to drop it off for free. They use this oil to heat our building in the winter which saves them a lot of money. This also positions the company as being GREEN. Their location includes 11,200 Square feet of very functional space on 5.7 acres of property. The business can be seen from I-70 and is located along the busiest road in town with tremendous exposure meaning free advertising. The building is custom designed for working on equipment and trucks as you can see from the video walk through of the business in the link provided in the sales package. This is the largest and most functional sales, repair, and rental shop location in the region with plenty of room to accommodate a larger business as it grows. The real estate described here can be leased at the market rate or purchased for 2.65M which is its appraisal value. The property recently passed a Phase 1 environmental test. Growth and Expansion: The new owner should add an outside sales person to work the area for both sales and rentals. The roaring fork valley is growing very quickly with high end housing and commercial for the entire 50 miles from Glenwood Springs to Aspen and Rifle is located closer to this area than United Rentals which is in Eagle Colorado. They should be getting most of that business right now but the current owner has mostly relied on the Oil and Gas companies. The new owner should be able to increase rentals substantially. Eventually, as oil and gas recovers and/or construction stays strong, a new owner can add a mobile repair and tire service, and sell tires from their current location which are all services that used to be provided out of Rifle but the company went out of business. They are positioned to add that business. They have the space and mechanics to do it. They also need to reach out to the oil and gas industry again since many of them are gone and have been bought by other groups that they don’t currently have relationships with. The new owner can add new vendors and products eventually also. Advertising truck repair based on their location is something they have considered because they have the mechanics and bays already and are right off of I 70 with virtually no competition for 40 miles to the west and 11 miles to the east. They need to show all these services and have them optimized on their website and this should start growing again. The owner is retirement age and wants to spend his summers gold mining in Alaska but will help transition the business. This business needs new ownership with the drive to grow it again. It has very little competition and can provide services and equipment to a very large area. Both rentals and sales to ranchers, oil and gas, and construction can help this company to grow again in the current environment. Plus, that area tends to be about a year behind Denver which means that 2018 should be a fantastic year. The account receivables aging report in the data room includes an item that shows a debt of 362K which is the owners Alaska venture and it will be removed before or at the closing and has nothing to do with the operating earnings or debt. ______________________________________________________________________________________ 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. Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering. Sincerely, Jeff Chapman Eisnaugle Company Broker Group, LLC. 999 18th St Ste 3000 Denver, CO 80216 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. 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.

Mountain Resort Earth Moving
$850,000 Cash Flow: $251,000
Mountain Resort Earth Moving

Glenwood Springs, CO

Long established earth moving company for sale in the Colorado Rocky Mountains. Last three years average sales and SDCF, $1.2M and $251,000. Frist time offered for sale, this earth moving company has an excellent reputation for quality work. Commercial and residential jobs range in size from $25K to $500K. Most of the work is site preparation for houses, and commercial buildings. Over a $1M of work on the books and plenty of work for a new owner who is interested in growing the company. The company has excellent staff in place. Owner does the estimates, A/R, books and oversees the Superintendents. Equipment is estimated at a value of $900,000 based on “Machinery Traders” comparable equipment. All equipment transferred free and clear. Owner will assist in a transition to understand all aspects of the business and its customers. Contact: Business World Brokers, Inc. (970) 704-1100 Although this information is deemed reliable, it is not guaranteed by Business World Brokers, Inc.

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