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.   

For Sale:

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 relationships and profitable contracts in place that generate recurring revenue.   His customer list is the very largest and well know Rental Companies including United, Sunbelt, FMH(Clark), Arnold Forklift, and many more that are not nationally recognized household names.      

Location:  Northeast Denver