Mobile Truck Repair, Maintenance & Emergency Service Co-Denver CO
Turnkey Mobile/On Site Vehicle Services Company
Truck Specialists: Mobile Truck Repair plus Regularly Scheduled Preventive Maintenance and Emergency Service Company
The Trailing 12 months earnings through July 31 2019 was 166K from 606K in revenues. The business has shown very steady 30% growth.
The business is split about 50/50 between scheduled and “we need help now” truck repair and/or maintenance. They have 80 percent recurring revenue mostly from long-standing emergency and fleet service contracts. This means that this company will not be different the day after a new buyer owns it. There will be the same amount of work waiting for them as there would be for the owner if he kept it. 80 percent recurring revenue also means that this should have an above average multiple on the earnings to establish the purchase price. Instead, we are applying a below market multiple because he has a much larger company that is over 10M in revenue that he owns and the growth in both companies has left him forced to choose. This company should be priced at 450K but he has agreed to let me price it at only 390K which is well below market. The business is being offered at less than 2 1/2 times the earnings.
This is a very special opportunity based on many factors: 5 star reputation online, turnkey operation, long term loyal customers creating a very high percentage of recurring revenue, loyal very skilled employees, low cost of advertising, and most importantly a very easy business to continue to grow which is already growing organically at over 30 percent a year(He has no salesforce). Easy to increase the already 30 percent growth rate: Buyer can add outside sales-person or two paid partially by commission which they don’t have now. This is an easy phone call. Most companies have one truck or more and all are looking to reduce costs. One of the ways they can reduce costs is that they can service their vehicles right away as opposed to have to schedule them with their current truck company costing them down time. Their quick turnover rate is very valuable to these companies. Plus, a new buyer could add a “Dynamo” in the industry which would allow the new buyer to conduct emission tests for medium and heavy trucks which will accurately indicate horsepower within ½ horsepower. Truckers care a lot about the performance of their trucks and this new machine should draw truckers to them for mandatory emissions testing leading to new long-term customers. Plus, a new owner could add a Heavy Tow Truck and/or a flatbed tow truck which can make them money whether they do the repairs or not.
The current owner will also help transition the company for up to 3 months post closing. The current owner does not work on the trucks himself. All this means that a new owner does not have to be a truck mechanic but should have either the aptitude or experience to be able to speak the language fairly quickly. The owner didn’t know truck repair when he bought this and learned very quickly without the help of a seller like the new owner will get here and he did great.
The sales price is only 390K and should be bankable with a down payment of 78K or less. All offers will be countered at the offering price. We have priced this at the lower end of the market. The main company is an S Corp.