Diesel Engine and Parts Distribution Business

Not Disclosed, MI

Southwest Michigan


Asking Price: Annual Revenue:
Not Disclosed $3,130,655

Wholesale/Distribution: Durable Goods


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RE: Diesel Engine and Parts Distribution Business Broker: Max Friar
Owner Financing is Available!
Limited Seller-Financing Available for Qualified Buyers.

Quick Facts

Asking Price: Not Disclosed
Annual Revenue: $3,130,655
Net Profit: $762,026
Cash Flow: $865,154
Total Debt: Not Disclosed
FF&E: $130,552
Real Estate: Not Disclosed
Year Established: 2007
Employees: 8
BBN Listing #: 901345079
Broker Reference #: 109

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Business Overview:

The Company is a massively profitable diesel engine and parts distribution business. Established in 2007, the Company sells overhauled, re-built, new, and used engines. The Company also provides both new and used engine parts. The Company’s geographic sales footprint spans the globe with multiple repeat customers. The Company is accredited with the BBB (Better Business Bureau) with an A+ rating.

The Company’s 41,125 square foot warehouse is stocked with 300+ diesel engines and engine parts from premier OEMs: Caterpillar, Cummins, Detroit, Deutz, International, Isuzu, John Deere, Mack, Mercedes, Paccar, Volvo, and more. The Company also stocks remanufactured blocks, camshafts, crankshafts, and heads. Good condition used take-off ECMs (Engine Control Modules), injectors, jake brakes, oil pans, turbos, and other various parts can also be supplied for the customer. Each month the Company sells and ships over 100 engines and parts worldwide.

The Company is 100% owned by a single owner. The Owner has been the sole owner of the Company since its inception.

The Company operates out of a 41,125 square foot facility. The facility was constructed in the 1970s and is in good shape. The building and interiors are maintained and up to date. There are three buildings in total: one office building and two warehouses. The facility includes 4,875 square feet of office space and 36,250 square feet of warehousing space between the two warehouse buildings. The Owner is flexible to lease or sell the real estate depending on the buyer's situation and preference.

The Owner would like to pursue retirement to spend time with his family and travel while he is still able to do so. However, he would consider staying on for a period of time at a full- or part-time capacity dependent upon the offering of acceptable pay from the new owner(s).

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Property Features and Assets:

Owned separately through the Owner’s real estate holding entity. The 41,125 square-foot facility sits on 3.5 acres of industrial-zoned property. The facility is broken up into three buildings: An office consisting of 4,875 square feet of space and two warehouses totaling 36,250 square feet of space. The Owner is flexible to lease or sell the real estate depending on the buyer's situation and preference.

Market Competition and Expansion:

Investment Highlights Include: 1. Diverse Geographic Footprint: The Company is well-established and sells engines and parts to over 14,000 customers per year. Most sales originate domestically, while some products are sold to international customers. The Company boasts strong diversification among the states domestically. This minimizes any residual risk that would be inherent had the Company had a primary state of sales. No one state accounts for more than 10.2% of total sales. 2. Established Customers and Vendors: The Company’s customer and vendor bases are both well-diversified, with over 300 vendors and over 14,000 customers in their ranks. The Company is not dependent on any one vendor or any one customer for their supplies or sales. While no individual needs to replace their engine or engine parts that frequently, there are several repair shops that call the Company often. Many of these repair shops quite often need parts or whole engines that the Company carries in their inventory. However, losing any one of the shops would not put a dent in the Company’s bottom line. The Company does have a few vendors they purchase marginally more from than others but losing any vendor would not put the Company in a difficult position as there are plenty of current and prospective vendors available. The Company can sell products on the Internet to 48 states along with some international customers. 3. Scalable E-Commerce Platform: Over the past decade, the Company has invested significant resources into its online presence. Most of the Company’s sales are transacted over the Internet with customers that the Company typically never meets in person. The Company holds the online infrastructure in place to do business across the nation and internationally. The Company mainly ships products to customers residing in the United States. A small but growing portion of their shipments is carried out internationally. The Company’s e-commerce platform took significant front-end development; however, the platform is now set up to be operated with minimal management or monitoring. Furthermore, the platform is ready to scale up to reach an even larger customer base if desired. A strong e-commerce presence is not common in the industry, providing the Company with a competitive edge over firms of similar size and scope. While the Company has its own website, the Company’s presence on other platforms such as eBay, Truck Paper, heavytruckparts.net, and Facebook bolster online sales. 4. Experienced and Cross-Trained Staff: A majority of the staff have a decade of experience and are between 30 and 40 years of age. Staff members contribute to the team favorably when critical thinking, problem-solving skills, and industry know-how are needed. The sales team has received numerous compliments and stellar reviews regarding their expertise across numerous diesel engine topics. Employees are cross-trained internally even if they have had previous experience with the same work or similar work. As such, staff members can be flexible and adapt to changing conditions. For example, the Company adjusted quickly to the restrictions imposed by the COVID-19 pandemic. 5. Reputation of Reliability: The Company has developed a culture that puts the customer’s needs first. The Company has set goals that aim to highlight competitive prices, excellent service, and a knowledgeable sales staff to extend customers the best experience when working with the Company. A few policies for transactional clarity and protection have been set in place for privacy, shipping, and return concerns. The policies serve to establish trust with customers and to drive the Company’s brand. The Company holds to the objective of under-promising and over-delivering. The Company expends great effort to illustrate excellent service by residing on multiple selling platforms over the Internet that highlight accessibility, customer interaction, and loyalty. Growth Opportunities Include: 1. Hire Mechanics to Increase In-House Rebuilt Engine Sales: The Company has reported that there is an opportunity to integrate rebuilt engine sales as a prominent revenue stream. The Company would be able to cut out shop vendors that currently perform rebuilding and remanufacturing services for the Company’s engines. Specifically, rebuilds of blocks, heads, crankshafts, and camshafts could provide the Company with an attractive runway for rebuilt engine sales growth and an opportunity to grow a substantial revenue stream within the Company’s sales mix. 2. Additional Sales Personnel: A key avenue to expanding the Company’s sales includes hiring additional sales personnel. The Company primarily sells to truck service shops and trucking companies. Hiring a road salesperson to focus on building relationships with more of these customer types would generate a strong word-of-mouth profile for the Company past what the Company has already achieved through the robust e-commerce platform. 3. Increase Purchasing Options: Strengthening part sales will require harvesting increased levels of parts from core engines already held in the Company’s inventory. In conjunction with this, more engines would have to be readily available to sell as a complete unit. Therefore, expanding both part and engine sales requires additional purchasing options. Ownership believes that adding a dedicated member to the team who focuses on diesel engine procurement across the country would allow for a more extensive inventory base to sell engine and engine parts from. 4. Industry Growth: Over the next five years, demand from truck transportation is expected to increase at an annualized rate of 3.3%. As the U.S. economy recovers from the COVID-19 (coronavirus) pandemic and levels of disposable income improve, consumers are expected to spend more on goods. In turn, the production of goods and the transportation of goods is anticipated to trend upward, benefiting demand for trucking services. When demand for trucking services increases, these trucking companies are expected to invest in truck repairs, which often include heavy-duty truck parts replacement, benefiting industry growth. Additionally, the Company is positioned to capture online market share. Aftermarket research firm MacKay & Co. found in a recent survey that fleets ordered 12.0% of their parts online. Survey respondents also indicated they expect online parts purchases to increase to 15.0% of total purchases in the next three years. 31.0% of those parts were purchased through a heavy-duty distributors’ website, with Amazon seeing 14.0% of total online parts purchases from the surveyed fleets.

Reason for Selling:

Retirement.

Additional Details:

  • The property is owned.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

Relevant Links:

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