Denver Rental Equip Delivery/Transfer & Heavy/Medium Equip Repair Co
included in asking price
included in asking price
Share this business:
The business just bought 110K worth of a used semi and trailer for a 3rd driver for their Portland location which asked for it. The business had also recently bought a 2014 one ton 2014 Chevy with 200K miles and a new dealer installed engine in early 2018 with a dealer warranty. He added this truck for Portland also because that big rental company had asked for a 2nd driver and truck in January. He also just added a location in Memphis TN per request and has a full time driver there as of January now. He is being paid 100/hr to haul equipment and 50/hr to clean and repair equipment near Memphis and the driver is only paid when he is working. The best news of all is that he did not have a salesman for over a year now and he hired a new one on January 12th for 52K per year plus a commission on NEW customers. This is all great news for the future earnings. 2019 has already seen a fast recovery indicating that 2018 was an a one off. It is recovering in way that he believes will look similar to 2017 when they made 184K on 1.5M in revenues.
In 2018 he lost 2 drivers, one of which went to one of his customers which he still has as a customer. The drop in revenues is for two reasons: The gap in time it took to replace those 2 drivers and that he decided in August to go into the real estate development business with his brother and decided to sell because of this. This resulted in the earnings from July to the end of the year being at a loss. He has now hired back 1 local driver and further hired 3 more(Memphis and Portland). You must discuss this directly with the Seller.
The business currently has Trailers, Trucks, and other assets currently worth 550K. The total assets of 550K in current value matches the sales price of 550K. Companies with 100% of their sales price covered by mostly large equipment sell for large premiums because of the reduced risk to a buyer. Plus, there is a lot of value to this company beyond the value of the assets. They were down from 6 to 4 drivers until December 1st when they started adding drivers again and currently have 7 which is more than they have had in over a year.
8 Year Old Heavy/Medium Equipment Transfer Company for the Largest Rental Companies
They also Repair Heavy/Medium Equipment
2019 is growing quickly again and should look like 2017. 2018 showed a loss of 8K on revenues of 1.05M. 2017’s earnings were 184,142 on 1,534,146 in revenues. Both 2015 and 2016 are very similar to 2017. In fact, 5 years of revenues and earnings before 2018 were are all within 10% of each other averaging 180K in earnings and 1.5M in revenue. This company has been very steady and predictable until they lost 2 drivers last year.
The company has approximately 550K in Assets made up of 505K of semis with landals, lowboys, heavy duty rollbacks, one tons, and a 35 foot gooseneck. In addition, there is an additional 45K plus in FF & E that includes tools, welders, and other equipment. Typically, companies with 100% of their sales price covered by current value assets especially assets as valuable as heavy tow trucks sell for well over 4 times earnings. If this company returns to the profitability they had for years of 175K that would make the company worth over 700K within the next 2 years.
The owner only works an average of 15 hours a week which is 5 in the office and 10 at home overseeing the operations. His wife helps with the books and works 10 hours per week. He has 7 full time drivers, one part time driver, 2 office staff including a dispatcher and a bookkeeper who also does the billing, and 1 mechanic, and in the summers a 2nd hourly shop and yard person. When he is out of the office, he has two of those employees that he relies on to help oversee the operation. The owner and his wife will be available to help in transition and consult longer term.
The company has many long-standing rel
About the Business
Contact the Seller
- Denver, Colorado
- Year Established:
- Number of Employees:
- Real Estate:
- Building Sq. Ft.:
- $4,800.00 Per Month
The property is leased which can be easily taken over or a new longer term lease created. He currently pays 4,800/month in a Gross Lease which gives him a 2000 square foot shop with a bathroom with a shower for the drivers, an office, and custom building with 16 square foot doors and a floor oil and sand separator along with a large 1 acre yard with room to expand.
Recurring business is over 90% of his revenues which comes from reoccurring business from large companies. This company will not change the day after the closing. The phone rings all day long. The company also delivers equipment for the largest disaster abatement companies. They have delivered generators to both Houston last year and California this summer because of disasters.
Growth & Expansion:
Growth and Expansion: There are a lot of opportunities for growing this company. A buyer could hire a sales person which they have had on and off and it worked but he wanted to maintain a certain size so he has not had one for the last year. He talks about this in the video interview. Off camera, he says he is too laid back to have a company that is bigger. That is why he only works 15 hours a week and his revenues have been so steady. He wants to focus on real estate. The company does not even have a website. A new owner should set up and start optimizing a web site which is a very inexpensive way to generate revenues. Mailing brochures to rental companies with large equipment should work also. More advertising is an obvious move. He only spent 5,900 in 2017 and less than 3K in 2016 which is less than ½% of revenues. Typically companies like this will have 4% to 6% of revenues in advertising. They have historically grown by word of mouth and referrals which is based on providing great customer service. The other big opportunity is for him to hire a licensed Tow Truck driver or get one or more of his current drivers wreck master trained and certified in custody and control procedures because they have two lowboys that can both be used as tow trucks. The business gets calls every day for towing. It could be a great way to keep employees busy if they don’t have all their drivers out delivering equipment. In addition, the owner believes that there may be a branding opportunity and/or a chance to open other branches in other states. He states the demand is very high and his guys are busy all day every day.
About the Sale
- Reason For Selling:
He is selling because he wants a quiet life in real estate.
The owner will sign a non-compete. He 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. He believes all employees will stay also.
- Seller Financing:
- Ad Detail Views: