Issue link: http://deals.uberflip.com/i/1433150
The Company is a retailer of outdoor power equipment. It also operates a full-service shop offering repairs, preventative maintenance, and replacement parts for nearly all brands of equipment. The Company is registered as an S-Corporation in Illinois, has been wholly owned (100%) by the active principal since 1989, and is staffed by 12 full- time and 5 part-time employees. It has two locations, one in Machesney Park consisting of a 6,240-square foot showroom and 2,500-square foot warehouse, which are owned by a related party. It also has a 4,000-square foot satellite showroom facility in Belvidere that is leased from a third party. Company Strengths • Superior Name and Reputation: The Company has a long- standing reputation as a leading power equipment retailer in the area. • Loyal and Reputed Customer Base: The Company has a diversified customer base. Its database comprises approximately 150 active house accounts that generate material repeat business each year. • Brand-Name Products: The Company is an authorized dealer of many of the biggest industry leading names of equipment. • Strong Supplier Relationships: The Company has long-term relationships with a diversified vendor base. These relationships enable consistent hardware supplies sourcing capabilities. • High-Caliber and Tenured Staff: The Company has extremely experienced and talented personnel to grow and support its business. Business Expansion Opportunities • Underlying Industry Strengths: Equipment stores have a recurring and recession-resistant business. • Market Expansion: The Company could leverage its current strengths and contractor relationships and expand its market share locally. • Service Expansion: The Company could also increase its service department to further diversify revenue sources. • Minimal Capital Investment: The Company's operations are not asset-intensive and anticipates minimal capital expenditures during the pro forma period. Prasad 'Pat' Karcherla, Senior M&A Advisor Tel: (630) 708-2408 Fax: (972) 232-1132 Email: pkarcherla@generational.com | www.Generational.com I www.DealForce.com For more information, please sign the Confidentiality Agreement DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Outdoor Power Equipment Retailer Northern Illinois – Asking Price: $ 237K 2021 Est. Revenue $ 2.6MM | 2021 Est. EBITDA $ 100K Highlighted Investment Considerations The Company is an authorized dealer of Cub Cadet, Simplicity, Husqvarna, Snapper, Snapper Pro, STIHL, Briggs Stratton, and Kohler. In 2020, the revenue mix comprise equipment sales (65% of sales), parts sales (22%), and service/repair (13%). The market mix comprises individual consumers/homeowners (90% of 2020 sales), commercial users (7%), and institutional users (3%). The Company has a 23,000+ customer database with a 75% rate of repeat/recurring revenue. Sales and marketing activities include TV and occasional radio slots. It also receives an advertising allocation budget from its major vendors based on its purchase levels. Deal # 64807