This Los Angeles area moving brokerage is a virtual cash cow. The company lands a wide variety of lucrative moving jobs from simple local residential and corporate moves to transcontinental and international moves which are typically brokered out. The firm has more business than they care to handle themselves, but the opportunity exists for a high energy buyer to capture revenues from the long distance or more cumbersome moves that may be being left on the table. On top of the moving business and mover brokerage, the company has developed a highly complementary onsite storage facility. These are not the type of Public Storage units that buyers often imagine. They are far better as they typically cater to high volume corporate clients. There are over 700 mobile storage vaults that can be vertically stacked and do not typically require public access. Access tends to be infrequent and is often provided by the company itself. Better still, the firm subleases large portions of space to clients. This component of the business provides over $10K net per month in recurring revenues.
This nearly 25,000 square foot facility leases for $18,500 per month on a secure lease with options to be negotiated in the sale. The sale includes 2 late model 26 foot moving trucks that will be fully paid off in the sale, as well as 700+ storage vaults, the dolly's and lifts, and all of the additional furniture, fixture, equipment and goodwill necessary to operate the business.
While competition certainly exists in this competitive industry, this firm has mastered lead generation and has turned the corner from operating all the jobs they receive directly, to broking out many of the jobs and focusing on the higher-margin low lying fruit that is less cumbersome. The storage component of this business is most buyers' dream since both divisions streams thrive off of the same customer base that need to store goods before or after moves, or in between relocations. This provides the company a strong competitive advantage as they can cater to all client needs. In turn they manage to earn revenues in each component of the client experience.
New operators may take this business in any number of directions. First, they may choose to in-source many of the moves that are being brokered out. Similarly, they may further target the lucrative but more arduous moves the company prefers to avoid. Next, with the storage facility at an estimated 75% utilization new management has built-in remaining office and onsite storage capacity to bolster revenues. Of course, due to the nature of the business, they could also obtain additional offsite space or open a secondary facility. Finally, the seller and the company's staff are highly experienced managing a much larger enterprise. The existing owner is willing to assist a buyer through a transition period, and provide them a roadmap to significantly increase each component of the business's top line revenues, margins and profits.