This business is now priced as a “Fire Sale” because the seller has decided to sell his property in Colorado and move to New York.  The business currently has Trailers and Trucks with a current value of 398K.  The total assets are approximately 450K in current value.  The earnings were consistent at almost 200K until earlier in the summer when they lost a driver to one of the locations they used to service in Denver.   This caused the  Sales Price to be lowered from 750K to 575K but now he has decided to lower it again to 490K with at least 400K down payment to be able to pay off his debt.  He will carry the 90K of the sales price for 5 years. Companies with 90% of their sales price covered by mostly large equipment sell for large premiums because of the reduced risk to a buyer.  He wants out as soon as possible and has allowed me to price this just above the value of his assets to help get this done.  His trailing 12 month revenues are still above $1.1M through September.  There is a lot of value to this company beyond the value of the assets. 

Heavy/Medium Equipment Transfer/Customer Delivery Company.  They also Repair Heavy/Medium Equipment

The trailing 12 months earnings for the trailing 12 months ending May 31 2018 was 192,311 on revenues of 1,459,976.  2017’s earnings were 184,142 on 1,534,146 in revenues.  Both 2015 and 2016 are very similar.  In fact, 5 years of revenues and earnings are all within 10% of each other averaging 200K in earnings and 1.5M in revenue.  This company has been very steady and predictable. 

The company also has approximately 450K in Assets made up of 398K of semis with landals, lowboys, heavy duty rollbacks, one tons, and a 35 foot gooseneck(See attached).  In addition, there is an additional 52K in FF & E that includes tools, welders, and other equipment.  Typically, companies with over 90% of their sales price covered by current value assets especially assets as valuable as heavy tow trucks sell for well over 4 times earnings. The sales price is now only 490K which is below 3X the 2 or 3 year average earnings which is at a fire sale level based on the fact that the assets are 90% of the sales price.

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 4 full time drivers, 2 office staff including a dispatcher and a bookkeeper who also does the billing, and 3 shop people including a mechanic.  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 are many largest and well know companies.

Location:  Greater Metro Denver