As of TTM period ending 08/31/16:
Total Revenues: $726,000
Adjusted EBITDA: $356,000 (49.1% total revenues)

Single location construction and general tool rental company servicing residential, industrial and recreational trade area near midsized metro city in South Central US. Strong, repeat customer base and newer, high quality equipment offerings. The Company has grown at an 8.9% compound annual rate since 2013 and demonstrates notable incremental revenue growth opportunities.

Total rental inventory with original cost approximately $1,270,000 as of August 2016 with significant equipment investment in recent years to keep pace with growth. Rental equipment is high quality and includes earth moving, aerial, pump and power, compaction, concrete masonry, landscaping, plumbing, flooring, hand tools and some standard party equipment (tables, chairs, etc). Vehicles and other non-rental operational equipment totaling $200,000 (approx., at original cost).

The Company has become the pre-eminent general rental company within the trade area through its high quality service, offering of newer, high quality equipment and convenient location. Revenue growth expected to continue through combination of organic growth plus growth/expansion opportunities including additional location to double current trade area and incremental increase in rental inventory via incorporation of larger earth moving, aerial and generator units.

Very organized and ideally located facility on major state highway, with quick and easy access to major freeway for deliveries throughout the service area. Clean, graveled yard with additional space for potential expansion.

Unique industrial, residential and recreational area located outside major city with notable residential and small commercial construction as well as industrial activity. Little competition and diverse customer base; top 20 customers comprise 29.7% total revenues, with top customer producing only 4.4% total revenues.

The Company has seven well trained employees as of 5/31/16 including non-active owner; competent and experienced General Manager will stay on post-acquisition. As ownership wishes to pursue other, unrelated investment interests, The Stansberry Firm is retained to assist with the acquisition. The preferred transaction structure would be an all cash purchase of stock of the Company from its sole shareholder. Ownership is also open to carrying a portion of the sale in a fully amortizing note, given the right acquirer and terms.

Posted Jul 6, 2016

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