Tractors, Farm & Agricultural Implementation - Business For Sale

5502

Fully staffed used equipment dealer in northeast Nebraska allowing for absentee ownership if so desired. The business keeps an inventory of used equipment of over $1.1 million on in stock that currently includes a 2013 AG-CHEM 1100, 2013 John Deere 612C, 2013 John Deere 8260R, 2010 AG-CHEM Rogator 984, 2006 John Deere 9760 STS and more. Customers return to this business regularly for their equipment needs due to a trusted business reputation, financing options and equipment transportation upon purchase. Gross sales surpassed $5 Million for the last two years and owner cash flow is more than $440,000 for the same time frame.
Complete turnkey operation with full inventory package and experienced sales staff in place with owner cash flow after debt service of $157,000.

Financial Overview
List Price: $1,900,000
Gross Sales
2014: $5,018,125
2013: $5,465,241
Owner Profit/Cash Flow
2014: $443,619
2013: $442,247
Profit Margin: 8%
Multiple: 3.1 *Multiples range from 1-5, with the average being 3
Valuation: [2014] Cash Flow x Multiple = Price
$443,619 x 3.1 = $1,375,219
List Price: $1,900,000 cash flow valuation plus inventory value = $2,475,219

Assets Included in Purchase: $1,915,000
Equipment: $550,000 (3 Polaris ATV’s, flatbed trailers, power washers, spreaders, pay loaders and more)
Vehicles: $165,000 (5 Chevy Pick Up Trucks)
Build-out: $100,000 leasehold improvements
Inventory: $1.1 Million (Sprayers, Floaters, Tractors, Combines, Headers, Planters, Tillage, Trailers)
A/R: $228,000
*amounts may vary
Business Information
Year Established: 2007
Location and Service Area: Northeast Nebraska
Lease: building available to lease back
Reason for Selling: focus time on other business
Employees: 2 Full Time Sales
Hours: M – F 8 a.m. to 5:00 p.m. Sat 10 a.m. to 4 p.m.
Seller Training Period: up to 3 years and will consider employment

Funding Example
Purchase Price: $1,900,000
15% Buyer Down Payment: $285,000
10% Seller Financing: $190,000
Bank Loan: $325,000
Assigned LOC: $1,100,000
Net assets of the business valued at $490,000 more than the value of the bank loan needed in the above financing scenario

Facilities:

Lease: building available to lease back

Training/Support:

up to 3 years and will consider employment

Seller Financing:

10% Seller Financing: $190,000

Sale Reason:

focus time on other business