Return To Opportunities List

Opportunities

CDL Training with 3rd Party Testing

CASH FLOW
$1,762,784

Specifications

  • Revenue
    $2,851,864

  • Equipment
    $361,732

  • Location
    Conveniently located on I-80

  • Lease
    3 properties on lease: 2 buildings, 3 lots

  • Profit Margin
    46%

  • Employees
    7 FT (1 office manager, office assistant/media, 5 trainers of which 3 can do 3rd party testing)

  • Intangible Assets
    Outstanding reputation, student references, relationships with trucking companies, curriculum

  • Price
    $1,550,000

  • Down Payment
    10%

Located conveniently on I-80, this training school served over 500 students came to this school for training and testing.  This school offers CDL classroom and hands-on training as well as refresher courses or testing.  They are 3rd party examiners for the State Department of Motor Vehicles, which allows this staff to complete testing on site rather than through a local DMV office. 

 

This school currently utilizes 3 spaces for operations.  Two leases have acres of property and standalone buildings, and the third is a leased parking lot for driving.  These spaces allow for ample room to grow and to build the student base to increase sales. 

 

The owner currently manages the finances.  He is also a certified 3rd party examiner for students’ their final exams.  These responsibilities can easily be absorbed by the existing employees.

 

This CDL training school is at the top of its field.  With a national reputation for providing excellent education and well-trained students, this training school is known for its high-quality programming, positive student experiences, and drivers who are sought after by national trucking companies.   This company has experienced exceptional growth since its inception in 2011 and is currently pushing capacity.  This business is ready for expansion through the addition of trainers to the team and is easily scalable into other markets!

 

This business is growing quickly!  The owner is adding instructors to keep up with demand!

 

 

Business Highlights

  • Year Established:  2011
  • Location:  Conveniently located on I-80
  • Service Area:  National Students, Local operations
  • Clients:   Students seeking CDL training and/or certification
  • Services:   CDL driver training and testing 
  • Building:   Site A – building (main office and shop) with lot for driving, Site B – (storage/shop) and lot for driving, Site C – leased lot for driving
  • Reason for Selling:  Retirement
  • Employees:  7 FT (1 office manager, office assistant/media, 5 trainers of which 3 can do 3rd party testing)
  • Seller Training Period: 3-6 months
  • Growth Opportunities:  Add trainers to increase capacity, add trucks for training and testing
  • Current Owner’s Responsibilities:  Financial oversight, testing

Financial Highlights

  • List Price: $1,550,000
  • Gross Sales:
    • 2018: $2,851,864 Annualized
    • 2017: $1,122,817
  • Cash Flow:
    • 2018: 1,762,784 Annualized
    • 2017: $516,949
  • Assets Included in Purchase*
    • Equipment and Vehicles: $361,732
      • 12 semi-trucks with trailers
      • 4 campers for student housing (additional revenue)
      • Tools and equipment: tires, welders, tools, jacks, repair equipment, impact wrenches
      • Classroom furniture, all curriculum, office furniture
    • Intangible Assets: Outstanding reputation, student references, relationships with trucking companies
    • Secured Students: Booked solid into March
    • o   A/R: $250,000

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-June
Tax ReturnTax ReturnTax ReturnTax ReturnNotes
20182017201620152014
GROSS SALES$1,425,932$1,122,817$747,918$450,052$6,595
Annualized$2,851,864
Net Income Shown on Financial Statement$858,924$395,960$146,530$136,796$6,595
ADDBACKS
Compensation to Owner$0$60,698$20,000$20,000$0
11% Tax on total W2 Salaries$0$6,677$2,200$2,200$0
Depreciation$0$25,844$24,588$17,459$21,212
Interest$3,551$9,476$4,847$2,161$0
Non-Business Telephone$480$960$960$960$960$80/month for personal lines
Insurance Premiums for Owners: Health, Life, Auto$7,212$14,424$14,424$14,424$14,424$1202/month for owner's & wife's insurance
401K for Owner$0$0$0$1,888$1,000Paid to Owner
Rent$0$2,910$0$0$0Paid to owner
Contributions/Donations$11,225$0$0$0$0
TOTAL ADDBACKS$22,468$120,989$67,019$59,092$37,596
Seller's Cash Flow = Total Addbacks + Net Income$881,392$516,949$213,549$195,888$44,191
Annualized$881,392
Profit Margin61.81 %46.04 %28.55 %43.53 %670.07 %
Cash Flow Analysis including 2018 annualized numbers

Students

  • Students seeking CDL driver training
    • 80% of business
    • 80% out of state
    • Must be 18 years old
    • Must have clean driving record
    • Vision Screening at DMV for license/Commercial Learner’s Permit
    • Must have a valid CDL learners permit before entering the school from the student’s state of residence 
    • Must pass a driving test (on site)
  • Students seeking refresher courses
    • 10% of business 
  • Students seeking 3rd party exam only
    • 10% of business

 

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services


  • CDL Training School
    • 4-week course
    • Classroom training
    • Hands-on training
    • CDL testing
    • Assistance with finding a job

 

  • CDL Refresher Course
    • 1-2-week course
    • Hands-on training
    • CDL testing

 

  • 3rd Party DMV Testing
    • 2-hour CDL testing

Employees

  • Office Manager – 1 
  • Office Assistant and Media Relations – 1 
  • Trainers
    • Classroom Trainer - 1
    • Hands-on Instruction – 5

*This business is growing quickly!  The owner is adding instructors to keep up with demand!

Growth Opportunities

  • Hire additional CDL trainers to meet student demand and increase student capacity 
  • Increase refresher course and test-only students 
  • Purchase additional trucks to increase capacity 
  • Advertise
    • The current owner does not advertise

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, a 2017 Cash Flow was used with a prescribed multiple is 3.  With this information, the computation is as follows:

$516,949         x          3          =          $1,550,847

The Fair Market Value found above positions the business List Price at $1,550,000.

Funding Example

Purchase Price:                          $1,550,000

10%Buyer Down Payment:          $155,000

15%Seller Financing:                   $232,500

75%Bank Loan:                          $1,162,500

Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $4,335.

Bank Loan 7-year term at a rate of 6% equals a monthly loan payment of $16,982.

After business expenses and loan payments, a buyer with a 10% down payment of $155,000 would retain a profit of $261,146, which results in an 168% return on investment in the first year.

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $1,550,000 with the terms listed above, the coverage ratio is 2.02. 

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

Purchase Price:

$1,550,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2017 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2017 Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

Attachments

Document Title / Description

This folder is empty.

Access to this Deal Room is restricted

Would you like to access the deal room?

Yes, please

Interested in
this business?

Complete the following information to sign an NDA and see more details!

Already have an account? Log in here.

Click to download NDA form

Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

Thinking of Selling?
The top 5 questions to ask any potential broker:


The Firm Business Brokerage is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.