Business For Sale

Business for Sale Overview:

32 Yr. Old Service Business, Buyer Gets $9.2MM in Assets for Just $3MM Down (no long-term debts on the balance sheet). Cash Flows $2MM-$3MM on 25-29MM in Sales Over the Past 4 Years. $3MM down at closing and the buyer will be in first position to over $9MM in total Assets. Sale Includes: $7.2MM in Equipment (see recent appraisal) AND $2MM in Accounts Receivable (Seller paid over $15MM for all hard assets.) Growing again after 2 down years, more profitable since cost controls in place. More specifically, we have cut non-essential overhead in the office and field by almost $1.2MM in the past 6 months. Also, sales are forecasted to be up 10%-20% the next 12 months. This ensures substantial cash flow starting immediately. The seller has been paying $100K/mo, or $1.2MM/yr. in equipment debts payments. The new owner will not have these payments as ALL EQUIPMENT WILL BE PAID OFF AT THE CLOSING. This again, ensures even more free cash flow immediately. Motivated Seller will carry ½ sales price for 7 years – has medical problems and wants to retire. He may consider an earn-out provision. Sale Includes: Over 550 vehicles (mostly new models), heavy equipment pieces, trucks, specialized tools, etc. (as stated, the equipment recently appraised for $7.2MM, however, the seller insists that most of the equipment is very specialized and is worth far more to the right buyer. Strong work in progress and contracts in place for 2020-11, Gross Margins 20% higher. In recent years cash flow has been weak for seller, due to illness, and bad financial decisions. However, as stated above, overhead has been cut by 60%, and all equipment and debts will be paid off at closing, the business will cash flow strongly in going forward. We are the largest company in the Front Range in our industry; we just have 1 other competitor in our newer services. We are recession resistant in many areas since we provide a critical service/product that private sector and city and state governments need every year. Today, we have fewer competitors in the bid hat and margins are slowly climbing again in all our services. Excellent reputation, no legal battles, never a complaint – ever! BBB rated Triple AAA for 5 Yrs. We are the largest Service business in our industry in the entire Front Range of Colorado. After 32 years of solid growth, we have held steady at $25-30MM in sales the past few years. We serve the largest commercial contractors, city and state governments and have an extensive and loyal client base that is much diversified. In 2009 sales have fallen to approximately $22MM from $29MM, due to the owner’s medical problems however; the cash flow will substantially increase since the owner has cut excess overhead by 60%. The new owner will immediately benefit from the leanest and most profitable business of its kind in the region. The buyer will step into an immediate annual cost/expense reduction of $2.4MM/year since these reductions have been in place and all equipment will be paid off. As stated, all assets will be paid off at closing. The new owner should cash flow between $2-$2.7MM in 2010 without growing the business at all. In fact, all cost and expense cuts were non-essential and we are no positioned to handle $30MM/yr with a leaner operation, the owner insists. A new owner with new energy and commitment can immediately step in and get the business to over $40MM with the given the demand for these services. There is nothing needed to grow to $40-$50MM/year as the equipment capacity, and the 8 acre state-of-the-art facility can easily double production. The seller has spent the past 10 years reinvesting all free cash flow and income back into the business to get it where it is today. He ran the books for “taxes” not profit. To summarize the seller is 100% confident that with overhead cut, a leaner employee base, all equipment paid off at closing and with all the work in progress they have contracted, the new owner with a strong business background and strong capital can immediately double the revenue and triple the cash flow. He is committed to this goal and will carry 50% of the full sales price. This says it all. The seller is fully committed to a solid transition to the new owner and do “whatever it takes” to ensure a smooth and orderly transfer of employees, customer and vendor relationships. Email for comprehensive sales packet and full video of operation and owner interview, etc.

For more information regarding this listing please contact us by completing the "Contact the Seller" form to the left. We look forward to hearing from you.

Property Features and Assets:

The seller has spent the past 10 years reinvesting all free cash flow and income back into the business to get it where it is today. He ran the books for “taxes” not profit. To summarize the seller is 100% confident that with overhead cut, a leaner employee base, all equipment paid off at closing and with all the work in progress they have contracted, the new owner with a strong business background and strong capital can immediately double the revenue and triple the cash flow. He is committed to this goal and will carry 50% of the full sales price. This says it all. The seller is fully committed to a solid transition to the new owner and do “whatever it takes” to ensure a smooth and orderly transfer of employees, customer and vendor relationships. FF&E and Facilities: The sale includes, over $7MM in hard assets (per appraisal), approximately $2MM in accounts receivable. That is $9MM in assets for just $3MM down. The seller paid well over $13MM for these assets in the past 5-7 years. Our biggest asset however, is 100 of the finest employees in the country for what we do. Another great asset included is 32 years of solid dealings with some of the most loyal customers possible. Our vendor and supplier relationships are great. In fact, due to our size, long-standing history and financial strength, we get materials at 10% cost discounts below competitors. This is an edge we have had for years and the new owner will benefit from directly. We have excellent highway access and our 8 acre facility is set up will efficiency and functionality in mind. The seller is open to sell the real estate for $2.75MM or lease the real estate for 6 years at a fair market rent which will be negotiated.

Market Competition and Expansion:

Competition: We have just 2-3 good competitors in Colorado in our core business, the rest are fly-by-night companies that don’t have the relationship that we have built with large contractors and city and state governments. In our newer division, which generates $5MM/year, we have just (1) competitor. Please see the owner on what this means. “There is plenty of work for all of us”, the owner states. We have never done “any” sales or marketing efforts, there is an immediate ability to sharply increase the gross sales and triple the cash flow with pro-active sales and marketing efforts that have never been there in the past. It took the past 10 years to build up the model, the equipment and train all employees to get where we are today. “Everything is here in place and fully functional to explode forward”, the owner insists. In fact, many of the smaller competitors that we did have in the past are leaving the industry because they didn’t prepare for a downturn. We are almost 100% paid off on over $15MM in equipment purchases over the past 7 years. This is where the seller has invested all free cash flow, back into the business to add value. Our competitors are suffering due to excessive equipment debt and high overhead. We do want to be clear here, that this company did also suffer financially over the past 2 years during the downturn. The seller did not cut costs and reduce overhead 2 years ago like he should have, in retrospect. He recognizes this now. Growth and Expansion: The market and our services are primed for growth as we move into 2010 and beyond. Anyone with energy, commitment, and sharp business acumen, can double the business from here. However, a sales/marketing and strong business background will help. You need no direct industry experience. The seller is fully committed to train for whatever period of time is needed for a risk free hand-off. Moreover, because the seller is carrying so much, he is fully willing to provide a clear “blueprint” to grow the business and acclimate the new owner(s) on where the money is in the industry. This is key, and will ensure solid success after the transfer. Understand that the business has steadily made $25-$30MM/year in operating almost exclusively in the Denver Metro area. The seller has elected to stay in a small geographical market. A new owner can immediately expand the operational reach of the business to a 4 state region without any additional employees, equipment or materials, etc. This should be pursued immediately. The seller has a wealth of knowledge and many solid ideas to grow the business. In short, he is committed to implement them with the new owner, but cannot do it on his own, as he is of retirement age.

Reason for Selling:

Seller has medical problems and wants to retire.

Additional Details:

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