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One Of The Largest Independent Machinery Dealers of Its Type In The Western USA
Listing Number: 1000001986
Multi-location, need-based retailer enjoys a strong brand built over 50+ years by providing professionalism, expertise, and exceptional service as it delivers quality repair services and sells 120 product lines (some which are exclusive or have with exclusive territories). The business has built a loyal following from commercial, government, and multi-generational individual customers as evidenced by strong repeat business and higher inventory turns than the industry – average of 84.4 inventory turnover in days vs. industry average of 130.4. It also has an average gross margin of 30.7% vs. industry 28.1%.
The business has a solid core staff with deep and broad industry & institutional knowledge. When combined with quality systems developed and refined over many years, it allows the company to provide a predictable quality boutique-style customer experience where there is consultative selling: staff take the time to understand customer needs and then help the customer learn about, and select, the best equipment to meet their objectives. This type of customer value means the business isn’t in a race to the bottom as a low-price leader.
This company competes favorably against large national dealers by providing better service, greater expertise, and a broader and deeper selection of products, but its large size and longevity give it the resources and professionalism to be differentiated from smaller machinery dealers of its type. It has survived eight recessions since its founding and continues to demonstrate solid growth in both revenue and cash flow. From 2019 to the present the business’ compound annual revenue growth has been about 10%.
This business would be a good acquisition for a complementary machinery dealer looking to expand into this geographic market, a platform acquisition for a private equity group looking to do a roll-up in this highly fragmented space, or an individual looking for a well-developed business to leap frog the many years required to develop a business with this level of revenue, cash flow, systems, and brand.
Financial Data for 12-Months Ending 8/31/22
Please see the introduction package for more details: Intro Package 1000001986 12 26 22