SnoCat Machinery Sales and Leasing in Pacific Nothwest For Sale

Business description

The client company is in the business of selling and leasing used SnoCat Machines to customers in the telecommunications, utilities, energy, mining, agriculture, forestry, and recreation industries. They also provide new and after market parts as dealers from a variety of manufacturers including Tucker, Thiokol, Bombardier, Pisten Bully, Tatou, and more.

The company has been operating for nearly 25 years and has built a solid customer base and reputation. They are the only company in the region providing this service and therefore face very little competition. They have strong relationships with the manufacturers’ that allows them to purchase SnoCat Machines and parts on favorable terms, thus increasing the profitability of the company.

The owner of the company would like to retire. He is willing to stay on for a reasonable amount of time to help in the transition and training of the new owner.

Property information

Real Estate:

Lease

Lease terms:

The real estate is owned by the sellers. It is proposed that the acquirer of this company will lease the real estate (land and buildings) from the sellers for a market rate to be agreed upon. Offers to purchase the real estate will be considered if the acquirer would prefer to purchase the real estate in addition to the business.

Location:

The business operates on a 1 acre parcel of land with 5 buildings that included an Office, Mechanics Shop, Detail Shop, Equipment Storage, and a 5 Bay Storage Unit. There is easy access for large trucks. The real property is not included in the sale unless the the potential buyer determines that they want to buy it in addition to the business.

Other information

Expansion potential:

The application of SnoCat machines seems to be expanding into non-traditional industries. Outfitters and guides are buying these machines for their business. Cities and counties are purchasing these machines and integrating search and rescue with their other emergency response services. Companies in agriculture are using these machines more often to manage sugar beat dumps and wheat and also as applicators rigs for fertilizers and soil amendments. Vehicle recovery companies (Wreckers and Tow Trucks) are purchasing them to add another dimension to the services they provide.

Another service that could be expanded includes summer storage and servicing. Many of the companies that purchase these machines would like someone to store the rig and service it on the off-season. There is enormous opportunity to provide custom parts for specialized use. This company offers some fabrication currently to satisfy this demand. However, the company has a very strong position to up sale many of their existing clients with enhanced functionality for their SnotCats.

Support & training:

Given an individual with reasonable skills and little direct knowledge of this business, it would take about 3 months to learn enough about the business to manage it properly. Therefore, the seller will agree to provide 160 hours of training over a 3-month period of time. The Sellers would be willing to provide more training and consultation if buyer is willing to compensate the Sellers for the additional time.

Reasons for selling:

The owner of the business is 60 years old and would like to retire.

Trading hours:

Regular business hours

Financing available:

Seller is willing to finance a portion of the sale for qualified buyers.

Furniture / Fixtures value:

$70,563 (included in the asking price)

Inventory / Stock value:

$373,000 (included in the asking price)