St. Louis Moving & Storage Professionals
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.
- 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
- 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 Statement||P&L Statement|
Jan - Sept
|P&L Statement||P&L Statement||P&L Statement||Notes|
|Net Income Shown on Financial Statement||$38,000||$248,000||$-50,000||$15,000|
|Seller's Cash Flow = Total Addbacks + Net Income||$52,000||$267,000||$-29,000||$43,000|
|Profit Margin||3.22 %||9.93 %||-1.70 %||2.47 %|
- National accounts
- Independent residential
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Shipment tracking
- Increase interstate business
- Build relationships with those in similar industries
- Relocation companies
- Expand marketing for storage vaults to increase reoccurring revenue
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.
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.
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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