Specialty Equipment Fleet: Rental and Maintenance with Two Locations
This specialty equipment business currently has $4M in backlog; applying the average 19% profit margin, this business could see profits over $3M in 2022! Their services are rental, sales, repair, and maintenance of niche equipment, including foundation & directional drilling equipment, cranes, and rotators. With a primary location in Phoenix, Arizona and a second location in Salt Lake City, Utah, they are able to service the Southwestern sector of the United States. Their clients consist of general & specialized contractors, foundation companies, electrical companies, waste management, infrastructure firms, and private owners of large equipment. Included with the purchase of this business is over $7.9M in equipment and inventory, making the business 68% collateralized. The team includes a CFO, Project and Operating Consultant, Mechanic, 2 Sales Representatives, 1 Accountant, and 1 Yard Manager. The owner oversees sales for only 15-20 hours a week, which the COO is being mentored to absorb.
Established over 15 years ago, this well-known business offers a solid reputation with only two competitors. Other growth opportunities include increasing rental inventory and expanding their reach into Texas. They have a client base made up of 75% repeat customers: This is primarily due to clients renting equipment, and then realizing they need to continue renting the unit for increased job performance or purchase it outright.
Priced at $11,600,000 this business has the potential to return $1,111,409 in 2022 based on the 2020+2022 average cash flow. The current owner believes in the businesses onward & upward revenues and is willing to roll equity of 10%, plus offer a 15% promissory note. This shows good faith in the future success of the business and mitigates risk to the future owner!
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2020+2022 Average Cash Flow
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Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2020+2022 Average Cash Flow
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Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
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