Sales Price just reduced 100K from 390K to 290K and nothing is wrong with this business. He has a much larger business he wants to focus on.
Turnkey Mobile/On Site Vehicle Services Company
Truck Specialists: Mobile Truck Repair plus Regularly Scheduled Preventive Maintenance and Emergency Services.
The Trailing 12 months earnings through October 31 2019 was 200K from 990K in revenues.
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. The business is being offered at only 1 1/2 times the trailing 12 months 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 growing with no salesforce. Easy to increase the 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 has just been lowered to just 290K. The main company is an S Corp. Please submit the electronic Non-Disclosure Agreement in the first paragraph above to get the detailed sales package with video interview of the owner.