Well-established company sells power equipment, power equipment parts, and repairs power equipment and small engines. Over the past 15 years, they have secured a loyal customer base, maximized operational efficiencies, established contracts, formed relationships with suppliers. They work with individuals, small companies, school districts and have contracts with large retail stores, municipalities, and a power equipment manufacturer to perform sales and warranty work.
Under the CARES Act as revised by the Stimulus Act, if you use an SBA 7(a) guaranteed loan, this company qualifies for 6-months of principal and interest paid by the SBA to the lender on your behalf (up to $9,000 per month), for a total savings of $54,000. The loan payments paid by the SBA are not taxable. The SBA is also waiving its loan guarantee fee of approximately $30,000 (based on the above loan amount). The SBA guaranteed loan must be approved by the SBA before 9/30/2021, or earlier if funds run out.
This business operates out of a 5,000 square ft main facility to sell parts, equipment and meet with customers dropping off equipment for service. The property may be leased for $60,000/year or purchased in conjunction with the business for $650,000.
An organic growth of 3-5% annually is projected by the Owner(s). There are few outside sales/marketing calls made. One way to increase sales is to deliver tools and equipment to job sites for customers. There are additional government contracts that are available for bid. The pickup and repair territory for retailers can be extended beyond the 50-mile radius they currently service.
There are 3 Power Equipment Dealers in the Greater Columbia area that would be considered competition. None of the three produces the gross revenue of this company, nor do they have the corporate contracts. They serve a different market, They are 15 miles, 21 miles, and 21 miles away.
Partner wants to retire.
Will train for 4 weeks @ no cost The Company has three revenue streams: 1) Equipment Sales 2) Repairs (Labor) 3). Parts