Heavy Construction Equipment Rental Business For Sale

Business description

This heavy construction equipment rental business is experiencing a dramatic increase in growth due to dynamic new construction in the strong, energy based economy of western Louisiana and eastern Texas along with the ongoing routine repair and maintenance of heavy industrial facilities and infrastructure and commercial business growth. Though located in LA, this business is not in direct competition with other similar businesses vying for the saturated New Orleans market and therefore has been able to build a diverse clientele in other areas of the state with no single client accounting for a major portion of the annual revenues. Major clients include multiple multi-billion dollar oil refinery expansions along the gulf coast, new construction of major liquid natural gas terminals, new construction of major pipelines to service the LNG terminals and refineries, new construction of a large casino, new construction of golf courses, and new construction of a multi-billion dollar CoGen (electricity generated by clean-burn coal) plant . The company only purchases new equipment to rent with many additions tied to long term (18 to 30 month) contracts in place. This business works directly with some of the largest construction companies in the US. The company currently maintains a consistent utilization rate of 85 – 90% for its equipment.
There are IRS provisions for accelerated depreciation and significant federal tax breaks that have afforded this company an accelerated growth and make this business especially attractive to an investor. The current owner is willing to stay on for up to 1 year and is currently grooming key personnel to replace him after that time.
Equipment rental accounts for around 60% of the revenues while new and used equipment sales make up another 25% and the final 15% come from parts and service. The business is currently being run as an LLC.

Property information

Real Estate:

Lease

Location:

There is a 1 story leased facility with 12,000 sq ft and space to expand. The facility is on 5 acres of land in an industrial area. The lot is fenced and secured and a new owner could relocate the business to a similar facility.

Other information

Expansion potential:

The company is currently experiencing incredible growth due to a strong energy based economy in the Gulf coastal region of the US. The demand is so high that simply adding to the rental fleet would increase revenues significantly, which the current owner has been doing over the past few years. Word of mouth takes care of the rest along with the minimal competition and repeat customer base.

Competition / Market:

There is very little competition in this area.

Support & training:

Owner is willing to stay on for a reasonable transition period, however there is capable management in place so a new owner could run the company in an absentee manner.

Reasons for selling:

retirement

Trading hours:

normal business hours

Financing available:

depends on the buyer.

Inventory / Stock value:

$16,000,000 (included in the asking price)