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Busy Denver Full Service Trailer Dealership Excellent Reputation For Sale

Denver, Colorado, US
Asking Price:
$580,000 Furniture / Fixtures included
Sales Revenue:
$2,900,000
Cash Flow:
$271,000

Denver Metro Trailer Dealer
As of 9/23/21 The Sales Price has been lowered 100K from 690K to 580K. The owner is motivated to sell for health reasons.

This is a full service trailer dealership, with a loyal and excellent staff. They sell, repair and service all types of cargo and utility trailers. They can perform any kind of repair or modification to almost any trailer. The company has seen steady growth on both the top and bottom lines for many years.

Established in 2003, this is a full service trailer dealership with 7 employees plus the owner. The company sells, repairs and services all types of cargo and utility trailers. They can perform any kind of repair or modification to almost any trailer. The company has seen steady growth on both the top and bottom lines for many years. Their earnings during 2020-21 were affected by Covid’s impact on the supply chain, which has forced longer lead times to get new trailer inventory from the manufacturers. They have adapted very successfully to this temporary condition by taking non-refundable deposits from customers for trailers they have on order. The new owner will benefit both from the customization and accessories often bought when these trailers are delivered and from the fact that the current owner has continued to order trailers to maintain a steady supply of new inventory, in spite of the long factory lead times.

The trailing 12 months of revenues to August 31st were 2.9M with 271K in properly adjusted earnings. 2020 had revenues of 3M with earnings of 311K. The Covid add back is footnoted in the “adjusted earnings spreadsheet”. The business has consistently trended higher which is partially because they consistently enjoy a high percentage of recurring revenues. It is priced at 2.6 times earnings at the new lower sales price of 580K plus inventory estimated to be 60K in trailers and 177K in accessories, parts, and other inventory which will fluctuate over time which is expected to total around 790K for everything. The 2.6 times multiple is very low for a dealership that includes 220K in estimated inventory at the closing. The multiple is less than 2X the business without the inventory.

The owner is 77 years old, with challenges of declining health. Since the beginning of COVID, he has worked primarily from home, going in one day a week to give the manager a day off. This speaks very well to the ability of his staff to effectively run the business in his absence. However, he still works 40 hours per week, mainly from home.

They sell a wide range of trailers for construction, farming, motor sports and recreation, along with most types of commercial and personal uses. They boast of having the "widest selection and variety of trailers in Colorado". They also have an extensive inventory of parts and accessories and, in addition to parts sold through the service department, they enjoy a substantial amount of over-the-counter trailer parts sales.

The business does a significant amount of repeat and referral business. They have hundreds of commercial customers who regularly come in for parts and service, as well as to purchase new trailers. The owner estimates that at least 50% of their revenues comes from current and past customers, along with referrals from their wide customer base. There are also thousands of trailers throughout Colorado with their name on them. This is very valuable to the new owner and means that, because of this solid, established customer base, the business should not change after the sale. All that will be required of the new owner will be to continue to provide the same quality of sales and service that their customers have come to expect.

The buyer will also get 93,650 dollars of current value of equipment, tools, welders, furniture, computers, surveillance system, phone system, forklift, etc.

This company has a very high Google rating, with lots of positive reviews, and it is rated A+ by the BBB. They are also a member of the "North America Trailer Dealers Association (NATDA)". The company has an excellent reputation in the marketplace because of the owner's philosophy of providing the best customer service available. That philosophy is reflected throughout the entire organization. They also have a great website, with all of their trailer inventory online.

A bank will only require 10% to 20% matching from a qualified buyer, depending on the buyers experience. This means that a buyer may qualify with no more than 100K in liquidity.

Details:

This company sells, customizes, repairs, and performs regular maintenance on all types of trailers. They are a dealership offering top quality trailers from some of the best trailer manufacturers in the country.

The company has a loyal and skilled staff that works well together. If a new owner wants to grow and add employees, they have a great location, plenty of parking, and steady growth to build on. The Seller is willing to train a new buyer with little or no experience, but the buyer must have the drive and aptitude or experience to run a busy retail business. He/she should also have a strong sales mindset.

This company has many long-standing relationships with businesses who use all types of trailers. It took years to establish these highly-profitable relationships and they will be very valuable to the new owner going forward. He/she will step into a steady stream of work at the closing. They have a constant backlog of service business waiting. The owner believes there will be no issues in the transition as long as the quality of work they do, and the way they treat their customers, does not change.

The business has a solid name and the finest reputation for fair dealings. The seller will agree to full Reps and Warrantees to a solid legal and business standing. There are no “ghosts in the closet”. They have a great safety record and no legal battles. They have never left a job incomplete. If the client has a problem with their work, they fix it.

Awesome Location: The property is in a great location. The building and lot are very functional for the business operations. Security cameras are in place and there is plenty of parking. It can easily accommodate more employees and future growth. The landlord will be willing to work with a new owner to provide a suitable new lease or buyer can assume the current below market lease which expires in February 2023.

Growth and Expansion: The current owner has done very little advertising/promotion for the past several years, relying almost solely on website generated traffic, plus the steady flow of repeat and referral business. A new owner, with the energy and experience to promote the business, will have many opportunities to grow this already solidly established business.

They are recession-proof because they sell necessary trailers and make necessary repairs.

Plus, Colorado is the best State in the country to own a business. Colorado has one of the fastest growing and strongest economies in the United States.

Thank you for your consideration,

Jeff C Eisnaugle
Business Broker Colorado, LLC

Property Information

Real Estate:

Lease

Leasehold Rent:

$150,000 per annum

Premises Details:

Awesome Location: The property is in a great location. The building and lot are very functional for the business operations. Security cameras are in place and there is plenty of parking. It can easily accommodate more employees and future growth. The landlord will be willing to work with a new owner to provide a suitable new lease.

Size in square feet:
9,300

Business Operation

Expansion Potential:

The current owner has done very little advertising/promotion for the past several years, relying almost solely on website generated traffic, plus the steady flow of repeat and referral business. A new owner, with the energy and experience to promote the business, will have many opportunities to grow this already solidly established business.

Competition / Market:

This company sells, customizes, repairs, and performs regular maintenance on all types of trailers. They are a dealership offering top quality trailers from some of the best trailer manufacturers in the country.

Reasons for selling:

Retiring

Employees:
8
Years established:
2003

Other Information

Support & training:

Will stay up to 4 months with compensation

Owner financing:
Owner financing is available. Please contact the seller for more information.
Furniture / Fixtures value:
$93,000 - included in the asking price
Inventory / Stock value:
$230,000

Contact Business Broker Colorado, LLC

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