North Carolina Relocation Specialists
This absentee-owned company excels in all facets of the relocation industry, including an array of storage solutions. Loyal customers and long-term relationships have helped this company grow for over 30 years. This business comes well equipped with 2 Day Cab tractors, 2 straight trucks, 3 trailers, and 2 forklifts along with specialized gear to facilitate expert transition services. Working with both residential and commercial clients, interstate moves are an area of specialty for this company. Offering services from packing to debris removal, no move is too complex.
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. Currently they are leasing a 24,000 sq. ft. endcap of an industrial multi-tenant building which includes 18 smart move containers, and 280 storage vaults (at 88% capacity).
A new location would be a great way to expand this business. The current location has no fenced area, so it would be difficult to add any additional trucks. Also, reoccurring storage revenue could be increased with the addition of more vaults. The absentee owner is ready for retirement and has priced this company below market value to expedite that goal.
- Established: 30+ years
- Location: Raleigh, NC
- 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: 24,000 total sq. ft – endcap of industrial multi-tenant building. 1,976 sq. ft office space, 3 dock doors, 24’ clear height, 1 drive-in door, 40’ x 40’ column spacing, 280 storage vaults, 18 smart move containers, 60 lift vans
- Reason for Selling: Retirement planning
- Hours: M-F 7-5
- Seller Training Period: 90 days transition
- Growth Opportunities: Expand into a new location with fenced area for truck parking, add additional storage vaults (currently 88% full)
- Current Owner’s Responsibilities: Absentee Owned
- List Price: $250,000
- Gross Sales:
- 2018: $1,976,000 Annualized
- 2017: $1,951,000
- Cash Flow:
- 2017: $$106,000
- Assets Included in Purchase*
- Equipment: Moving; cardboard baler, 2 pallet jacks, 6- 2-wheel dollies, 12-4-wheel dollies, 3- E-carts, 15 speed packs, 1 set safe jack, 4 piano boards, 25 sheets of Masonite, 1 kick back dolly, 2 refer dollies, misc. walk boards, ramps, dock plates, furniture pads, etc. Office; full suite of office furniture – copy machine, IT equipment, laptops, iPads, and telephones
- Vehicles: 1 Freightliner Day Cab, 1 Peterbilt Day Cab, 2 straight trucks, 2 forklifts, 3 trailers
- Intangible Assets: Diversified service list, 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
|P&L Statement||P&L Statement||P&L Statement||Notes|
|Net Income Shown on Financial Statement||$-40,000||$83,000||$120,000||$54,000|
|Seller's Cash Flow = Total Addbacks + Net Income||$-20,000||$106,000||$152,000||$114,000|
|Profit Margin||-1.35 %||5.43 %||7.76 %||5.47 %|
- Interstate residential
- National accounts
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Shipment tracking
- Expand into a new location
- Current building has limited truck parking
- Add additional storage vaults
- Currently at 88% capacity
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 2.7. With this information, the computation is as follows:
$106,000 x 2.7 = $286,200
The fair market value found above positions the business list price at $286,200.
« The owner of this business is motivated to sell; this business has been listed at a discounted price of $250,000.
Purchase Price: $250,000
10% Buyer Down Payment: $25,000
10% Seller Financing: $25,000
80% Bank Loan: $200,000
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $466.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $2.628.
After business expenses and loan payments, a buyer with a 10% down payment of $25,000 would retain a profit of $68,868, which results in a 275% 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 $250,000 with the terms listed above, the coverage ratio is 2.85.
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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