1 13 21 Update. He estimates his truck is worth $25K and if a buyer wants him to keep it and bring or buy their own, he will sell the company for $95K. A buyer could also put down a down payment of much less than $25K and buy a truck which lowers their down payment either way. He has lowered the price again even with higher earnings because he has other plans and will sign an non compete.
This business was started in Denver based on demand for the delivery of storage containers. The business has steady customers who call when they need a container picked up or delivered. The company has virtually no advertising budget, no rent, little administrative cost, and is very efficient. The owner believe this business will prosper with a focused new owner who could give it more attention. He went independent and started working for himself July 1, 2017.
The 2020 revenues were 185K with 85.6K in earnings which were both higher than 2019’s revenues and earnings. The 120K sales price is less than 1 ½ times the 2020 earnings. This is without any add back for COVID 19 which impacted his earnings from early March to late May. He thinks the earnings would have been close to 100K. He has an older dog he likes to take with him which is one of the reasons for the sale and not accepting longer more profitable deliveries. You get out of this business what you put into it. The company’s profit margin is always between 40% and 50% which means that when the owner is working they are going to net more than 40% of what they charge in profit.
The new owner will have many ways to grow the company by advertising, adding another truck and driver, and by the owner taking longer hauls, and by working more hours.
The Sales price has been lowered again to 120K and it includes a 2018 Dodge Ram 3500 dually 6.7 liter high output engine with aesin transmission and a 3:73 rear end that he paid 58,799 dollars for in May 2019 and a valuable trailer that he bought in 2020. The sales price was established by the earnings with consideration to the current market value of the truck and trailer, recurring nature of the customers, some concentration of revenues, and the profit margin. This is an opportunity to own a company where you are your own boss, have an easy path to growth, and can build equity while you are making good money.
The company has built a great reputation and the ability to easily grow this company with very little cost. A new owner’s attention would increase the growth and profitability very quickly. Further growth will come from focusing on additional marketing and advertising.
No specific experience is necessary. The current owner can train the new owner quickly. This will allow the new owner to focus on growing the business. Non tractor trailer CDL OR Class A is required to operate this commercial vehicle.
Location: Anywhere in the Greater Denver Front Range Area