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Opportunities

Specialty Equipment Fleet: Rental and Maintenance with Two Locations

Absentee Ownership!

CASH FLOW
$2,700,000

Specifications

  • Price
    $11,600,000

  • Revenue
    $18,000,000

  • Cash Flow
    $2,700,000

  • Profit Margin
    19%

  • Service Area
    Southwestern United States

  • Equipment
    $7,882,331

  • Employees
    7: CFO, COO, Project and Operating Manager, Mechanic, 2 Sales Representatives, 1 Accountant, and 1 Yard Manager

  • Intangible Assets
    Long-term industry knowledge and experience, reliable industry professionals, sole distributorship

  • Multiplier
    4.45

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!

Purchase Price:

$11,600,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

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: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2020+2022 Average Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020+2022 Average Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.