High Quality Equipment and Event Rental, Sales, and Services Company
Location: Southwest U.S. HQ: South Texas Inter-Coastal
The business provides a diverse product mix of high-quality party rentals, tenting rentals, and construction equipment rentals. Events range from, but are not limited to, city festival events, temporary tenting & power when natural disasters occur, to general contractors who need to rent a generator for a day, a week, a month, or longer.
Key Aspects:
• Market leaders in party rental, tenting rental and construction rental equipment across
South Texas.
• Experienced management of complex event logistics, coordination, and cost efficiencies
• Highly diversified product mix and customer base that reduces buyer’s risk.
• Ability to execute large complex events turn-key with minimal reliance on outside subcontracts
• Special expertise in fair and festival events which are annually reoccurring for the business
• “Go to” business for large complex events and set-ups (higher margin)
• Current main geographic market anticipated to experience significant and sustained growth
• Cost efficient internal processes in place
• Also serves major Texas metropolitan areas such as Austin and Houston
• Strategic inventory management processes such as utilizing Like Kind Exchanges (LKE)
• HUB certified & GSA Contract Multiple Award Schedule - Category 532490P
• Certification with the U.S. General Services Administration completed in order to better
service government contracts
• In 2022, approximately 90% of structure tents were replaced or added with a full range of
sizes from 20x20 to 100x246
Opportunities:
• Further penetrate its current geographic market
• Expansion into key metro areas within Texas
• Further perfect internal efficiencies for increased margins
• Further diversification of customer base outside of the party market
• Streamline corporate functions such as HR, IT, and Accounting
• Employ extensive social media presence, specifically Instagram
• Opportunities to further expand the construction equipment side of the business
• Continued investment in equipment inventory to ensure customer markets receive the best that is available
• Phenomenal benefits for prospective buyers relocating from California or the Northeast due to lower cost of living and government-friendly atmosphere for small businesses
• Future online order capabilities for select items, ie, equipment.
Current Markets
• The business currently serves a customer base that includes commercial businesses, contractors, and individuals.
Real Estate
• The business operates from one centrally located warehouse as well as five outlet storefronts. All real estate, aside from one outlet store, is owned by related parties and are available as part of a transaction. One store outlet is leased from an unrelated third party.
Shareholder Objectives
• The two owners are seeking an eventual full exit from the business, transitioning to retirement and to pursue other unrelated business opportunities. Current ownership is seeking an acquirer to continue growing the business. The owners are open to various deal structures to achieve these goals as well as a negotiable transition period to new ownership.
**Financials are TTM as of 3/31/24**
