Heavy Equipment And Backhoe Rental Service  •  $380,000

Location: Los Angeles
Seller: Willard Michlin
Phone: 805-529-9854

Business Summary
If You Are Looking For Business Actually Making A Profit In 2009 And That Either A Man Or Woman Can Run, Without Non Technical Background, You Need To Look At This Business. It Is As Good As It Looks And The Information Proving It Will Be Released To Qualified Persons Without Having To Make An Offer To See P & L Statements. You Will Need Working Capital After You Buy This Business, Because Most Customers Are On 40 Day Billing. The Accounts Receivable Are Not Included In The Sales Price.

Financial Information Provided Above Is based on the First 10 Months Of 2009 Annualized.
2008 And 2007 Look Even Better. Accounts Receivable Are Not Included In This Price.

Operations, Products And Service

This Company Operates As A Backhoe And Related Equipment Rental Company. It Currently Has Three Operators With Three Backhoes That Are Dispatched To Different Job Sites Around The Southern California Area. (Including Los Angeles, Orange, Riverside, San Bernardino And San Diego Counties.) The Jobs Are Primarily Federal, State, Hospitals And School Jobs.

The Broker Can Discuss What Business Is Coming Down The Pipeline Within The Next Year And Assist You In Locating Sources For New Business.

When One Of The Two Hundred Plus Customers Calls In A Request For An Operated Backhoe. The Dispatcher In The Office Takes The Order And Job Information- Such As Location, Attachments Needed (I.E. Breaker, Auger, Compaction Wheel, Etc.) And How Many Days The Job Will Takes. Then Schedules The Job. Next The Transportation Specialist Prepares The Haul Truck For The Move, To The Job. The Forklift In The Yard Helps Him Load The Heavy Items Onto The Haul Truck. Then The Backhoe Operator Is Contacted And Is Given The Job Information And Details. All This Is Done The Day Before The Start Of The Job. The Operators Are Under The Direction Of The Customer/Foreman At The Job Site. The Operator Calls The Office Daily To Let They Know If They Are Returning The Next Day And If Anything Is Needed Such As Fuel For The Backhoe. If They Do Need Fuel The Dispatcher Will Notify The Service Mechanic/Haul Truck Driver To Deliver Fuel And Grease For The Tractor. Fuel Can Either Be Delivered Via Service Truck Or Haul Truck/Freightliner M2

Husband And Wife Together Put In 40 Hours Per Week Mostly Office Administration And Phone Scheduling. Husband has worked the Backhoe Part Time, But he is not currently doing this. You Do Not Need To Be A Contractor Or Do Any Physical Labor.

Profits

The Company Profits Come From Hourly Backhoe Rental, The Labor To Run Them And Equipment Transportation To And From The Job Sites. Profit Mentioned Above Is The Current Sellers Benefits For One Working Owner In 2009.

Added Profits Come From:
1. Transporting Other Companies Equipment Or Brokering Out Jobs, For Eight Percent Commission.
2. Bidding Jobs Would Be A Natural Added Benefit. If You Have A “C-12” Or “A” License.
3. Becoming Authorized Distributors Of Parts And Accessories.

As All Business, They Have Had Their Sales For 2009 Drop. The Good News Is That Because Of Cost Reductions The Net Profit Has Only Been Lightly Reduced To The Owners. The Gross And Net Above Are Based On An Annualized 2009. Jobs Are Constantly Coming In And The Contractors Have Not Stopped Doing This Kind Of Work. The Customers And Business Are Still Here

An Equipment Loan For 195,000 Is Available To A Qualified Buyer By The Financing Companies.