North Denver Busy and Highly Rated Moving Company, LOWER SALES PRICE, Customers Call All Year Round, Loyal Employees, Relocatable
Highly Rated Moving Company
Mostly North Denver along with Lafayette, Boulder, Erie, Firestone, Thornton, Broomfield, Louisville, Longmont, Loveland and surrounding Areas
The Sales Price was Lowered on 2/11/21 from 475K to 450K.
The 2020 earnings were 215K from revenues of 596K. His 2019 earnings was 196K from 521K in revenues. The business has shown steady 10% or higher growth including in 2020. The price has been lowered below 2.1 times its earnings at 450K. The earnings would have been higher without Covid 19 but I have no way of accurately adjusting for this. In other words, he believes he would have made 10% more than he shows if Covid 19 had not happened.
The business has many long term workers, has some recurring revenues from storage facilities and previous customers, no advertising or marketing other than a website, and a great reputation with a 4.8 Google rating with 52 reviews. They have a lot of repeat business and a lot of referrals from customers and have realtors who refer them business. They have also moved families multiple times and their families. They are centrally located just North of Denver Metro. They are hands on management and receive reviews on invoices. They are respected in their community, family oriented and have a great website. Their online ratings are very valuable to a new owner who wants to advertise.
Their trucks are well maintained by their own very reliable and inexpensive mobile mechanic. Customer Service is a major priority leaving no stone unturned. If there is something they need, they get it. They will be celebrating 15 years in business in 2021. Their website was started 14 years ago. Customers call all year round. Their strength is in their people. They represent the company professionally.
Covid 19 is starting to result in a lot of people moving which he thinks will continue for a long time. The current strong demand is an opportunity for a new owner to grow the business. Covid 19 has caused a migration into northern Colorado from larger cities including Denver and from climate change areas like California and Arizona. He is certain that there will be as much work as the new owner wants beyond the sale of this business.
This is a great opportunity based on many factors: 4.8 star reputation online which is very high for a moving company, loyal and very skilled employees, very little need for advertising at its current growth rate which can be increased, and a very easy business model to continue to grow which is already growing “organically” at over 10 percent a year(He has no salesforce or advertising). The Buyer can add a sales person paid mostly by commission who can call on realtors, new home builders, storage units, apartment managers, etc, “wrap” their trucks in advertising, spend more on SEO, buy/lease an additional truck, expand their territory, charge more, etc.
He works 40-60 hours a week during peak season and 40 hours a week on average overall but doesn’t do any of the physical moving himself. He does most of the bidding, scheduling, hiring/firing, problem solving, and basic vehicle maintenance. A new owner does not have to be a truck driver or need to do any heavy lifting. The owner didn’t know the moving industry when he bought this and learned it very quickly and has done great. He has been buying real estate from his profits and wants to buy even more real estate with his sons with the proceeds from this sale. He will sign a non-compete.
The sales price was recently lowered to 450K. The main company is an S Corp and this can be either a stock or an asset purchase. He will carry 10% for a qualified buyer. This business will qualify for an SBA bank loan and the SBA will pay the first 6 months of payments(5% of the purchase price) and is waiving their 2.5% upfront fee also. A bank will only require 10% to 15% matching plus a small amount of working capital from a qualified buyer meaning a buyer may qualify to buy this business with only 60K in liquidity. This company has no debt.