Business For Sale

Business Overview:

$3.5MM Down Gets Over $13MM In Assets, Receivables, Vehicles, Inventory, and $2MM in Tax Breaks! Auto, RV, Buses, Coaches Dealership/Service Business. - The sale includes over $13MM in assets, inventory, equipment and Solid Accounts Receivables for just $3.5MM down at closing. Our receivables are 99% solid! They are largely state and local governments and large corporations. We are the largest company in the entire 10 state Rocky Mountain Region in our industry; with just 2-3 other direct competitors in many of our product and services. We are recession proof in most areas since we provide critical products and services that private-sector, city and state governments must budget for each year. “Our business model today is far more lean and profitable than EVER” insists the seller. Cash flow was good in the past; today it’s much better, with a more profitable product and service mix. Everything is in place to gross $30MM in 2010, with $2.5-$3MM plus in clean cash flow, now that we have cut overhead, improved margins and changed the mix. “We will have our most profitable year ever in 2010” the seller confirms. The seller has spent the past 19 years re-investing everything back into the business to get it to the finest shape ever. Going forward, debts are down, costs are down, volume is high, and gross profits are stronger. We have the leanest balance sheet ever in our 29 year history. Net liquidation value of the company is almost $6MM. (This excludes many debts that are on the balance sheet that the Seller will honor prior to closing, and will not be taken over by the Buyer.) The sale also includes approx. $2MM in "unused" depreciation that the previous owners have been unable to use given their tax situation. But a new owner with gains to offset, will be able to use these depreciation credits; worth over $1MM-$1.5MM in actual tax savings. The seller paid 50% of gross sales for the business 19 years ago. Today, after a 1,000% increase in sales, they are seeking a sales price of just 15% of gross sales. Motivated Seller ready to retire, will carry 1/4 of the sales price for 5-7 years. He may consider an earn-out provision for a strong buyer. Sale Includes: Over hundreds of vehicles (much late model) are included in the sale. We service and sell to the entire 10 state Rocky Mountain Region. We have many exclusives and large territories for various product lines. The new owner will step into very strong reoccurring cash flow from solid long-standing government contracts that have been in place for 10-plus years. We have strong vendor and supplier relationships that have taken years to develop. We enjoy the lowest costs, best service and highest quality products from our diversified group of suppliers. This is key. Our product and service mix is also very diversified. In recent years we have eliminated or reduced product and service lines that were not as profitable, and gone heavy into areas that are far more profitable. We have the finest reputation in the 10 state area, no legal battles, with 99% customer satisfaction. If we have a complaint or dissatisfied customer, we make it right. We stand behind our name. Better Business Bureau rated Triple AAA for 5 Years standing. As stated above, we are the largest service and sales business in our industry in the Rocky Mountain 10 state region for many our product lines. It took 28 years to establish the business model that we have today. The seller has invested and re-invested all free cash flow for the past 7-10 to do two things; avoid taxes, and strengthen the business platform. In fact, in 2007 the seller invested and expensed over $1.4MM in leasehold improvements and new facility equipment. the entire faciltiy is A++/ state of the art. Everything is here to produce solid and strong cash flow in a good economy or bad. All debts been paid down, most of the equipment is paid off, payroll has been slashed, all unneeded costs have been eliminated. Please ask for the sales packet including 6 yrs of tax returns and 3 videos on the facility.

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:

Facilities:The sale includes over $13MM in assets, inventory, equipment and Solid Accounts Receivables for just $3.5MM down at closing. There is tremendous equity in all our assets, especially since the seller has paid down much debt in recent months, and sold off less profitable lines. We had a large fleet that had much debt in the past. Today the vehicles and equipment are paid down, and will produce strong cash flow. The completely renovated facility (costing almost $3MM to upgrade) sits on a 6 acre site in Denver with excellent highway access, right in the center of everything. It is very functional and can handle $60MM/year in gross sales. Everything here is state of the art and we spared no expense to build it right. The seller seeks a lease of $36K/year for 6 years, NNN, or is open to sell the real estate for FMV. Our biggest “Asset” however, is our people. We have dozens of loyal employees who have been with us for years, are well-paid and are very motivated. Again, we have recently trimmed non-essential payroll. Another key asset is our reputation. With almost 30 years of solid business dealings with private sector, state, and local governments. In fact, some city and state governments use us exclusively year after year, even though we are often more expensive than competitors. This says it all! Also, the sale also includes approx. $2MM in "unused" depreciation that the previous owners have been unable to use given their tax situation. But a new owner with "gains" or other forms of income they wish to shelter can offset it with this $2MM excess depreciation. These depreciation credits are worth over $1MM in tax savings to a new owner with other inocme.

Market Competition and Expansion:

Market Outlook and Competition:In the past, we used to make just 4%-5 % gross profit on a some items, and today we have changed the model, and make 20% for a similar product. Our sales are flat, but our profit will clearly be stronger in 2010 and beyond. In short, belt tightening, different product lines, and being more aware of the company’s financial position will ensure continued strong bottom-line net income. It should be stated here that the owner has never needed “income” from this business, due to other income from other businesses and real estate. The seller has largely run his books to keep taxes low and ensures little to no profit by year-end. All the re-investments made to keep taxes low by the seller, will be a boon to the buyer! This is a good problem to have. In summary, the seller has stated that the business and all its divisions can double in sales, and triple in free cash flow over the next 3 years with what has been done in recent years to re-focus the business. The seller has grown the business slowly and conservatively over the years and has missed many profitable opportunities for growth because he has been positioning the business for sale and planning to retire. A new owner with energy, commitment and a strong sales and marketing background can quickly take advantage of many areas for growth. Please see the video interview with the owner on this point. Although the owner wants to retire soon, he is fully committed to stay on for as long as it takes to ensure a smooth and orderly transfer of employees, vendors, customers and operations. Most importantly, after 18 years growing the business the owner has a wealth of knowledge on exactly “how” to double the business, he just doesn’t have the drive or commitment he once had. 2/3rds of our products and services are completely recession proof. The other 1/3rd is discretionary, however, we have shifted heavily into a lower-cost choice for them in most of our lines. We are now solid in any economy.

Reason for Selling:

Retirement

Additional Details:

Resources: