Los Angeles County Relocation & Storage
This absentee-owned company offers a full spectrum of relocation services. Transportation at any distance paired with an array of unique storage solutions has ensured loyal customers for over 30 years. This business comes well equipped with a day cab tractor, 3 straight trucks, 3 trailers, 2 forklifts, and 2 flatbeds along with specialized gear to facilitate expert transition services. Working with both residential and commercial clients, office relocation is an area of specialty for this company. From large hotels to fine art galleries, this company can move and store items for a renovation, relocation, or new construction project.
This business is one of only a few approved providers of moving services for Active Duty service members and federal employees. For those being deployed or relocated, this company is at the front of the line to garner that business and facilitate base to base or overseas transitions. The standalone 22,000 sq. ft. building with fenced area includes 60 rack spaces, 26 smart move containers, and 144 storage vaults. Three large dock doors are both grade and dock high with 24’ clear height to facilitate efficient operations.
Increased marketing for storage services would be a great way to grow this business. Along with developing relationships with relocation companies and realtors to increase national exposure. The absentee owner is ready for retirement and has priced this company well below market value to expedite that goal.
- Established: 30+ years
- Location: Los Angeles, CA area
- Service Area: Local, statewide, and national
- Clients: Corporations, military, national accounts, those moving independently
- Services: Moving, packing, crating, shipment tracking, and storage (short or long-term)
- Lease: 22,000 total sq. ft - standalone building with fenced area. 1,976 sq. ft office space, 3 dock doors, 24’ clear height, ESFR sprinkler system, 60 rack spaces, 144 vaults, 26 smart move containers.
- Reason for Selling: Retirement planning
- Hours: M-F 7-5
- Seller Training Period: 90 days transition
- Growth Opportunities: Expand marketing for office storage and moving, build relationships with relocation companies
- Current Owner’s Responsibilities: Absentee Owned
· List Price: $175,000
· Gross Sales:
- 2017: $1,795,813
- 2016: $1,783,520
- 2015: $1,137,417
· Cash Flow:
- 2017: $177,405
Assets Included in Purchase*
- Equipment: Moving; 4 wheel dollies, 2 wheel hand trucks, e-carts, 3 panel carts, 10 speed packs, 4 pallet jacks, approx. 600 furniture pads, 1 kickback cart. Office; full suite of office furniture, copy machine, IT equipment, laptops, iPads, and telephones.
- Vehicles: Day cab tractor, 3 straight trucks, 3 trailers, 2 flatbeds, 2 forklifts
- Intangible Assets: Long-term client relationships, diversified service list, fully immersed in the industry by offering both storage and transport to clients from all sectors
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
Jan - Sept
|Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$-147,000||$-87,528||$-195,106||$68,345|
|Meals & Entertainment||$0||$34||$262||$1,565|
|Seller's Cash Flow = Total Addbacks + Net Income||$-139,000||$177,405||$-10,833||$187,037|
|Profit Margin||-18.46 %||9.88 %||-0.61 %||16.44 %|
- National accounts
- Independent residential
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Shipment tracking
- Expand marketing of storage services
- Build relationships with those in similar industries
- Relocation companies
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 2. With this information, the computation is as follows:
$177,405 x 2 = $354,810
The fair market value found above positions the recommended business list price at $355,000.
« The owner of this business is motivated to sell; this is a FIRE SALE with the business list price of $175,000.
Purchase Price: $175,000
10% Buyer Down Payment: $17,500
10% Seller Financing: $17,500
80% Bank Loan: $140,000
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $326.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $1,840.
After business expenses and loan payments, a buyer with a 10% down payment of $17,500 would retain a profit of $151,412, which results in a 865% 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 $175,000 with the terms listed above, the coverage ratio is 6.83.
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.
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: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2017 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2017 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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