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St. Louis Moving & Storage Professionals

CASH FLOW
$267,000

Specifications

  • Price
    $275,000

  • Revenue
    $2,690,000

  • Valuation
    $600,750

  • Cash Flow
    $267,000

  • Location
    St Louis, Missouri

  • Service Area
    Local, statewide, and national

  • Reason for Sale
    Retirement planning

  • Intangible Assets
    Excellent reputation, diversified service list, offering both storage and transport to clients from all sectors

  • Equipment
    Moving; 15- 2-wheel dollies, 24- 4-wheel dollies, 6 E Carts, 56 library carts, 12 panel carts, 3 pallet jacks, 1 set safe jack, 3 mules, 10 piano boards, 1 kick back dolly, 3 platforms, 2 desk risers, misc. walk boards, ramps, and handling equipment. Office; full suite of office furniture, IT equipment, laptops, iPads, and telephones.

This absentee-owned company excels in all facets of the relocation industry. This business works with commercial and residential clients alike, providing expert services from packing to long-term storage. Military partnerships are a point of pride for this company. This business is one of only a few approved providers of moving services for locally-based service members.  For those being deployed or relocated, this company is at the front of the line to garner that business. 

This company also has a unique niche for their commercial clients, they can move and store items during a renovation, relocation, or new construction project. This business comes well-equipped with 1 pack van, 3 straight trucks, 1 day cab, 3 trailers, and 2 forklifts. Along with extensive basic moving necessities and a great reputation, this business is turn key ready and ready for growth.

Increased marketing for storage services would be a great way to grow this business. A new location with a larger area for truck parking would allow expansion of services. The absentee owner is ready for retirement and has priced this company well below market value to expedite that goal. 

Business Highlights

  • Year Established: 1978
  • Location: St Louis, Missouri
  • Service Area: Local, statewide, and national
  • Clients: Military, corporations, national accounts, those moving independently
  • Services: Moving, packing, crating, shipment tracking, and storage (short or long-term)
  • Building: 24,000 total sq. ft – end cap of industrial multi-tenant building. 1,976 sq. ft office space, 3 dock doors, 24’ clear height, 1 drive-in door, 430 storage vaults, 6 smart move containers, 67 lift vans
  • Reason for Selling: Retirement planning
  • Hours: M-F 7-5, with weekend services available
  • Seller Training Period:  90 days transition
  • Growth Opportunities: Increase interstate business, expand marketing for storage vaults
  • Current Owner’s Responsibilities: Absentee Owned

Financial Highlights

  • List Price: $275,000
  • Gross Sales:
    • 2017: $2,690,000
    • 2016: $1,705,000
  • Cash Flow:
    • 2017: $267,000
  • Assets Included in Purchase*
    • Equipment: Moving; 15- 2-wheel dollies, 24- 4-wheel dollies, 6 E Carts, 56 library carts, 12 panel carts, 3 pallet jacks, 1 set safe jack, 3 mules, 10 piano boards, 1 kick back dolly, 3 platforms, 2 desk risers, misc. walk boards, ramps, and handling equipment. Office; full suite of office furniture, IT equipment, laptops, iPads, and telephones.
    • Vehicles: 2 forklifts, 3 straight trucks, 1 day cab, 1 pack van, 3 trailers
    • Intangible Assets: Excellent reputation, diversified service list, offering both storage and transport to clients from all sectors

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan - Sept
P&L StatementP&L StatementP&L StatementNotes
2018201720162015
GROSS SALES$1,613,000$2,690,000$1,705,000$1,741,000
Annualized$2,150,667
Net Income Shown on Financial Statement$38,000$248,000$-50,000$15,000
ADDBACKS
Interest$14,000$19,000$21,000$28,000
TOTAL ADDBACKS$14,000$19,000$21,000$28,000
Seller's Cash Flow = Total Addbacks + Net Income$52,000$267,000$-29,000$43,000
Annualized$52,000
Profit Margin3.22 %9.93 %-1.70 %2.47 %
 

Typical Clients

  • Military
  • Corporations
  • National accounts
  • Independent residential

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

Services

  • Moving
  • Packing
  • Crating
  • Shipment tracking
  • Storage
    • Long-term
    • Short-term

Growth Opportunities

  • Increase interstate business
  • Build relationships with those in similar industries
    • Relocation companies
    • Realtors
  • Expand marketing for storage vaults to increase reoccurring revenue

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 2.5.  With this information, the computation is as follows:

$267,000         x          2.5       =          $600,750

The fair market value found above positions the business list price at $600,000.

 

«  The owner of this business is motivated to sell; this is a FIRE SALE with the business list price of $275,000.

Funding Example

Purchase Price:                       $275,000

10%  Buyer Down Payment:     $27,500

10%  Seller Financing:               $27,500

80%  Bank Loan:                      $220,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $513.

Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $2,891.

After business expenses and loan payments, a buyer with a 10% down payment of $27,500 would retain a profit of $226,154, which results in a 822% 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 $275,000 with the terms listed above, the coverage ratio is 6.54. 

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:

$275,000

$
%
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: %

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210 N 78th St. 2nd Floor
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