Horse and Livestock Trailer Dealership For Sale

Business description

This Virginia “S” Corporation was founded in 1997 and the owner has been intimately involved in the operation of the business since its inception. The Company offers a large selection of new and used horse & livestock trailers. The Company has two locations that are complete with full service departments. Both locations offer a wide variety of brands and styles to meet a variety of needs. They have a courteous and knowledgeable staff that is more than capable of assisting the weekend rider or the full time professional.

Over the years the Company has built a stable business with an excellent reputation that dominates its marketplace. Average annual revenues for the last three years $8,903,812 with an upward trend; 2006 revenues were $9,436,531. Strong Earnings have accompanied this strong revenue stream with Seller Discretionary Earnings (SDE) averaging $448,510 over the same period. The owner is willing, and in fact, would like to continue to work but has reached the point in life where he no longer wants to be owner. He is therefore offering the business for sale at an asset price of $1,265,000.

Property information

Real Estate:

Lease

Lease terms:

Expendable and negotiable

Location:

The Company has two prime locations strategically placed within its marketplace for maximum exposure. Both locations are in high traffic areas within their service regions so they are easy to find, easily recognized, and are able to display much of their inventory to the public without additional effort.

Other information

Expansion potential:

Obvious areas for growth are to add locations and salespeople but those options require significant infusions of capital. The reputation that the Company has built, the strong relationships it has in the industry and with its vendors, and the talented staff already in place would make such a capital investment a safer proposition than most cases. However, this Company can be grown without a dramatic infusion of growth capital. Profit growth by controlling costs better, managing inventory more closely, and transitioning the Company to less of a dependence on vendor floor-planning (lower interest expenses) are all moves that can improve the organization. Continued focus on the internet and E-marketing are huge opportunities for the Company. Adding virtual tours of the higher-end living quarters trailer lines would enable non-local customers to better inspect inventory prior to making a buying decision. E-mailers and promotional updates to regular customers in the industry would enable the Company to broadly reach its customer base regularly. Expanding the endorser’s section of the website to include actual testimonials from the professionals on the Company’s products and service would add more credibility to an already strong reputation.

This Company has many things going for it that any acquirer will be able to use to grow the business. The longevity, reputation, and staff that the Company and owner have developed in twenty-seven years in the industry means that a buyer can feel safe that they are purchasing a Company that has a proven track record of profitability and that all they need to do is continue to build on the strong foundation already in place.

Competition / Market:

All businesses face competition. This Company is no different. Within the Company’s marketplace there are several small dealerships but only three major competitors. One is a local competitor to one of the branches despite not selling exactly the same product. This competitor sells more cargo and landscape trailers than horse trailers. There are two other similar dealers that could be considered competition to the Company however, none of them conduct the majority of there business in what the Company considers its primary market area. Current ownership believes that the Company’s dedication to customer service/satisfaction is what has differentiated it from its competitors and what enables them to dominate their marketplace. The amount of repeat customers, the Company’s longevity, and professionals willing to endorse the Company goes a long way to proving this belief. Over the years the Company has proven to be reliable and its customers have come to count on it for their trailer needs.

Support & training:

The owner is willing to train an acquirer for a reasonable training period or to work for a buyer for an indefinite time period, whichever the buyer would prefer.

Reasons for selling:

The owner has reached the point in his life where he desires to be gainfully employed but is no longer interested in the risk of ownership. He has built a solid business and desires to cash out to let a new buyer take the business to the next level or to assist the buyer from a non-equity position.

Trading hours:

normal

Financing available:

negotiable

Furniture / Fixtures value:

$184,133

Inventory / Stock value:

$6,615,807

Contact the seller

For more information about this business for sale, click the Contact Seller button.

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