Full Service Medium to Heavy Truck Repair, Welding and Heavy Towing

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Solid Pipeline with Impressive Gross Profit Margins, Skilled & Loyal Employees
Asking Price:
$2,500,000

Gross Revenue:
$5,890,000
Cash Flow:
$870,000
EBITDA:
$870,000
Inventory:
$595,000
included in asking price

FF&E:
$900,000
included in asking price

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Business Description

2017 had revenues of 5,891,270 with earnings of 870,000. The business has shown very steady 7 1/2% growth long term with the earnings growing at over 15% a year long term.

2018 has several very special events happening which can be detailed after completing the non disclosure in the link above and submitted.

The sales price is 2.5M plus the cost of a new piece of equipment that has not been placed into service yet. The business is being offered at less than 3 times the earnings. This is a low multiple for such a large business with so much in recurring revenue and assets. They have a large percentage of their revenues coming from long-standing fleet service contracts which means a very high % of recurring revenue. This is a very special opportunity based on what a great reputation does, long term loyal fleet owning customers, high recurring revenue, loyal very skilled employees, and very low cost of advertising.

They also have over 1.5M in current value assets broken down by 595K in parts inventory, 178K truck inventory, 228K equipment, and 564K in vehicles. These are big assets that are mostly large equipment and trucks that can be liquidated easily. The assets cover 60% of the purchase price which is very high and should push the multiple of this business above 3 times the earnings. Keep in mind that companies with 60% of their sales price covered by assets typically sell for over 4 times the earnings. This offers a lot of protection to buyers.

Put down less than 400,000 and make over 870,000 in the next 12 months And get $1.5M in Assets!

They do full truck repairs on the largest equipment and trucks made. They sell, repair, and tow most large vehicles.
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The sales price is 2.5M plus the cost of a new piece of equipment that has not been placed into service yet. A bank will require an estimated down payment of between 270K and 350K. This means that you can put down 350,000 and make over 870,000 in the next 12 months And get 1.5M in Assets! I have been asked to do a detailed job of qualifying buyers before they meet or talk to the owner. The seller will only meet with highly qualified buyers. All offers will be countered back to the offering price. We have priced this at the lower middle end of the market and he does not play games. The main company is an S Corp.
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Brief Overview and Deal Points:

The buyer will get 1.5M in current value assets debt free. Plus, the buyer will also step into a solid pipeline of work-in-progress for 2018 that is already contracted with very impressive gross profit margins. “2018-2019 will be awesome years”, the owner states. In short, the seller is 100% bullish on his the short and long-term projections of the business.

They service and maintain trucks that are worth between 100,000-800,000. In fact, they do service and repairs on Cats, Volvos, various fleet diesels, and large equipment. The need for large trucks is steady, so they need absolute minimal downtime on this valuable and costly equipment. This is highly specialized and technical mechanical work. They service and maintain expensive trucks which is particularly important when the economy slows down as truck fleet owners seek to extend the life of their existing fleets instead of buying new trucks. When the economy eventually slows down again, a fleet owner seeks to “squeeze” and extend the life for as long as possible. This is one reason the seller is so bullish on the coming 3-6 years of performance. They are mostly recession-proof because their clients have to service and protect their trucks and fleets even in a recession. What used to be $7,000 worth of maintenance per year per truck 10 years ago is now an average of $17,000 today. The large

About the Business

Year Established:
1981
Number of Employees:
30
Real Estate:
Leased
Building Sq. Ft.:
25,000
Facilities:
The shop is one of the largest and most functional shops in the region for truck repair, equipment install, and fleet maintenance. The owner has “everything” needed to handle up to $9M/year in sales and service. The new owner will not outgrow these shops for a long time.
Market Outlook/
Competition:
They service and maintain trucks that are worth between 100,000-800,000. In fact, they do service and repairs on Cats, Volvos, various fleet diesels, and large equipment. The need for large trucks is steady, so they need absolute minimal downtime on this valuable and costly equipment. This is highly specialized and technical mechanical work. They service and maintain expensive trucks which is particularly important when the economy slows down as truck fleet owners seek to extend the life of their existing fleets instead of buying new trucks. When the economy eventually slows down again, a fleet owner seeks to “squeeze” and extend the life for as long as possible. This is one reason the seller is so bullish on the coming 3-6 years of performance. They are mostly recession-proof because their clients have to service and protect their trucks and fleets even in a recession.
Growth & Expansion:
Growth and Expansion: In the past, they have not done any sales or marketing efforts. Their website is 14 years old. They are expecting to continue growing in the coming years, without any significant advertising and marketing efforts. The seller knows exactly how to continue to grow this business. They just need an owner that wants to commit to the growth plan. OSHA, DOT and other regulatory bodies create the demand for many of our services. They are OSHA and DOT certified.
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About the Sale

Reason For Selling:
The owner is retiring
Training/Support:
The owner will stay as long as needed to help with a smooth transition.
Seller Financing:
10%

Listing Info

ID:
1533505
Ad Detail Views:
167

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Business Listed by

Jeff Chapman Eisnaugle

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Sponsoring Broker:

Paul Olsen
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License# ER.040043531

U.S. Census Data for Adams, Arapahoe, Denver and Jefferson Counties, CO
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Source: Decennial Census (2010), United States Census Bureau.

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U.S. Community Survey Data for Adams, Arapahoe, Denver and Jefferson Counties, CO
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Source: American Community Survey (2010-2014), United States Census Bureau.

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