Construction Equipment Dealership and Service Center

Description:
The Company is a certified dealer of medium to heavy construction equipment. The dealership offers a full line-up of construction equipment, attachments, and parts. It also provides rentals, pick-ups & deliveries, and maintenance & repair services.

Key Aspects:
• Consistent Margins: Average combined gross profit margins of 38.1% and average combined adjusted EBITDA margins of 16.0% from 2021 to 2023
• Diverse Customer Base: Management estimates 60% of 2023 revenue was derived from agricultural customers, 25% from construction, and 15% from government projects
• High Customer Retention: In 2023, management estimates that 97% of revenue came from repeat customers
• Minimal Customer Concentration: No single customer generated more than 5% of revenue in 2023
• Extensive Coverage: Established dealership covering a wide service and sales area
• Varied Sales Offerings: Approximately 46% of 2023 revenue came from new equipment sales, 31% from parts, 12% from service sales, 7% from rental equipment, and 4% from used equipment sales at the primary location
• Established Facilities: Well-equipped to service, repair, and maintain a wide range of equipment from several manufacturers
• Existing Assets: Robust stock of parts and servicing equipment

Opportunities:
• Continue Growth: Increase the geographic footprint to encompass additional counties where the market is not fully optimized by other existing dealerships
• Expand Market Reach: Market new models and lines to the existing local market
• Increase Service Fleet: Expand the service truck fleet to increase in-field services
• Diversify Service Options: Include maintenance and repair of other equipment utilized by agriculture-related customers and construction contractors
• Implement Search Engine Optimization (SEO): Enhance the Company’s website by applying the principles of search engine optimization (SEO) to attract more organic traffic

Headquartered:
• Western, US

Current Markets:
• The Company serves the agricultural, construction, and governmental industries across eight counties in the local region.

Real Estate:
• The Company operates from two locations, with a combined total of 48,000 sq. ft. of space, which includes service bays, a sales and rental lot, and warehousing and office space.
• The primary location is owned by the Company's shareholder who is open to entering into a long-term lease for the real estate.
• The secondary location is rented from an unrelated third party.

Shareholder Ownership:
• The Company is owned by a single shareholder who would like to prepare for retirement.
• The owner is willing to remain with the Company for a predetermined period of time to ensure a smooth transition to new ownership.