Location: On the main street of a fast growing small town SE of Denver
The trailing 12 months to April 30, 2026, revenues were 3.57M with 228K in
earnings.
The owner States " We carry many types of new and used inventory for your work
and recreation needs.
Our inventory is constantly changing and there is always
something new to check out. We can ship nationwide and pride ourselves on having
fair pricing. For Sellers, we also buy all sorts of items and take
consignments.
"
Both used car dealerships and equipment rental companies typically sell for
above normal multiples for many reasons. The 625K sales price is only 2.74 times
the trailing 12 months earnings to April 30 2026.
This includes the FF & E and
the rental equipment, but you must add their cost of for sale inventory to get
the final sales price. As of May 15th, they have 360K in “owned” inventory for
sale at their cost which creates a total sales price of 985K. Inventory should
be thought of as more valuable than cash for the following reasons: The more
that the business has in inventory at cost, the more you will sell for profit
right after the closing.
In addition, this allows you to finance the purchase of
the inventory through a bank loan as part of the total purchase price. When you
sell the inventory, you will recover the cost PLUS a profit. This will also
reduce or eliminate the need for working capital as you will turn inventory into
cash every day from the closing date forward.
This is great timing for a buyer to buy this because the business is trending
the same as 2023 and 2024 through April of 2026. Plus, they offer 3rd party
financing that they do not make any money directly off of BUT they have recently
partnered with a local bank to provide financing whereas they are paid to refer
the customer.
The owner works 40 hours a week and is Selling because he wants to retire to
spend more time with his family.
The business is in a rural area that has large properties, horse ranches, farms,
and most importantly is one of the fastest growing areas in Colorado which makes
the demand for rentals like their skid steers, trenchers, augers, etc and the
purchase of ATVs, UTVs, and utility trailers very high. They are also a small
dealer for several lines of trailers, UTV’s, etc.
Many growth opportunities described in the Detailed Sales Package.
They have a great reputation for the quality of our work, dependability,
accurate bidding, and for fair dealings. The seller will agree to full Reps and
Warranties to a solid legal and business standing. They have a great record for
safety (OSHA).
The company has 3 trustworthy, competent, and reliable employees other than the
owner. They have room for new employees if the new owner wants to grow this
company. The Sellers believe all employees love their jobs and will all stay
after the transition.
There is 50 miles between Denver and Colorado Springs which is part of
Colorado’s “Front Range” that is expected to be fully developed someday with
more than 30 small towns with large property homeowners, builders, remodelers,
ranchers, farmers, etc often don’t have all of the equipment that they need for
specific things year round, and prefer supporting a local business which is
convenient.
He rents their location for only 3,500 a month which is a “Gross” short term
lease. The landlord is open to a longer-term lease and has only asked for the
ability to increase the rent at slightly over the increases that are expected in
property taxes over time.
This is a very good deal. Leases in and around Denver
would be significantly more expensive. The property is .
26 acres and has an old
house with approximately 2200 square feet upstairs that is used for sales, the
office with 3 work stations, the main bathrooms, and a small showroom that had
some accessories, and another 1000 square feet downstairs which has two garage
doors and is mostly used for storage, repairs, and maintenance.