Colorado Mountains Event & Party Rental Company 

2025’s revenues were 1.3M with 363K in earnings.  That is a 28% profit margin which is good for a party rental company.  2026 looks great, as of March 24th, the company had 2.08M in bids from over 300 potential renters which is 20% above the same time last year and 460K under contract which is 17% above the same time last year.  This means that they should do over 2M in revenue this year.  They will continue to add events which means 2026 should show +/- 50% revenue growth and even a higher % of growth on the bottom line.  This growth is not a onetime event.

They also have an estimated 55% in recurring revenues which are coming from their wedding planners, event spaces, and 13,494 customers in their database.  Their competition is in Denver or the west central mountains which are hours leaving their competition at risk of road closures from accidents, rock falls, fires, weather, and vehicles breaking down.  The other considerations are on site repairs or replacement of real time issues and that the resorts and event locations often have events every day and sometimes multiple times a day making it impossible for party rental companies facing a weather event to bring it early because the space doesn’t have room for it.  This means that they have a big advantage in pricing, lower expense, and therefore, profits.   

The sales price is 1.37M which includes the party rental inventory and other equipment including 13 vehicles, 2 trailers, racks, etc which would cost approximately 3.72M to buy(replace) today.   The owner has meticulously gone through all of the assets and has created a detailed spreadsheet listing everything with a current value totaling 1.7M which is made up of 1.45M in rental inventory and 250K in furniture, fixtures, equipment, trailers, and vehicles.  The replacement cost of their inventory, time frame to build up their recurring client referral base, earnings, and the scarcity and expense of warehouse space are the reasons that it makes no sense for anyone to start an event rental company from scratch creating a big barrier to future competition.   The other reason is that there are more hotels, event spaces, and the size and expense of events gets bigger every year which increasingly means that they don’t want additional risk to their event which includes road closures from weather, rock falls, fires, accidents, or one of the event rental vehicles breaking down.  This favors them since they are local already.  Plus, they specialize in mountain/cold specialty tents and use their own tent fabric washing and drying electric hoists and high-end wood flooring that can be leveled on most surfaces.    

The reason the sales price is ONLY 1.37M dollars which is well below the “orderly liquidation”, 60 days to sell the assets, value of 1.7M is because the Buyer needs to buy the building at 4.25M dollars(they are contingent on each other).  Here is why: He wants to sell both the business and the building and recently received an unsolicited offer for 4.25M for the building which he has not accepted, nor will he accept because it makes more sense to sell the building to the buyer of the business.   

This business has evolved over the years to know what mountain events need in specialized flooring, tents, lounge furniture, gas fire pits, etc.  They use very specific tents because they are the best at dealing with wind and snow for many reasons including having optional augers that “screw” into the snow providing safer anchoring.  They no longer use just liners but now combine custom lighting with draping for a classier more sophisticated look inside their tents.  Their inventory easily allows for multiple tenting jobs simultaneously.  They have recently added a lot of high end, high markup lounge furniture and a flooring system that delivers level wood flooring over sloped and uneven terrain.  This is a premium option for higher-budget events on hotel lawns, resort properties, private properties, and ranches.  Their inventory supports over 5,000 square feet of raised flooring.  The leveling creates falling risk based on some slopes creating a need for their custom railing system which adds to the cost and profits.  There are only a couple of these floors available in Colorado and it takes a lot of employees specially trained, trucks, and time to set them up which is the most profitable rental item they have and also a gigantic barrier to competition because of the extra cost for their competitors to compete with this high demand floor.

There are 2 salespeople excluding the owner and between 24 and 7 crew depending on the time of year that are paid hourly.   The staff has proven to be trustworthy, competent, and reliable employees.  Employees are easy to find because the ski resorts finish their season when theirs is starting and the ski resorts start hiring when their season ends.  In fact, the ski resorts support and help them find employees because they know if their employees stay year-round, it increases the chance that they will be available again year after year.  The owner is very happy with his current sales team does not do sales himself.  Their advertising expense in 2025 was only 15,666 dollars which is just over 1% of the revenues.  

Party Rental companies are fundamentally sales organizations that need to also have a strong logistics component.  I have never seen a party rental company with only 1% advertising cost.  The two salespeople should be able to handle more leads coming to them through additional targeted marketing to wedding planners, event locations, resorts in many ways, and by enhancing the website, SEO, and especially using more social media of all types, especially Instagram and Facebook.  The new owner should have online marketing experience or be willing to hire a marketing expert who has this.  In summary, the business and rental equipment needs to be growing to keep up with the increased cost of rent, employees, and the inventory.

Growth and Expansion:   The owner can add a third commission-based salesperson.   The new owner should improve their online presence by spending money on search engine optimization and by adding landing pages for people searching for their services.  They currently have only a single webpage that is not properly optimized.  The demand for their business is expected to continue to grow long term based on the increasing popularity, population, # of visitors, and always increasing activities of the mountain resorts and towns year-round.  These mountains used to be mostly skiing and destination weddings.  Now the mountain towns and resorts compete weekly all year round for tourists and locals hosting food, beer, and wine festivals, international sporting events, golf events, trade shows, biking and endurance competitions, conferences, artist shows, outdoor bands, plays, snow sculpture competitions, retail sidewalk sales, parties, reunions, marathons, outdoor church services, etc.  The destination wedding market is continuing to grow year around.  During the summer twenty years ago, a resort may hold one event a weekend, now they may hold four or more in addition to the increasing number of weddings and parties.  Plus, the Colorado mountains have continued to grow in popularity and population.  The construction of new hotels in the mountains is still happening which results in an increasing number of events.  There is also an increasing amount and size of repeat events especially in all of the resort towns.  Most events require a floor, tent(s), lighting, a generator(s), and heaters for 2 1/2 of the 4 seasons during the day and for all 4 seasons for nighttime events, which are high margin rentals. 

They have a strong base of recurring revenue and the largest inventory for a mountain-based party rental company especially for tents including many one-of-a-kind items that make them the best choice to supply many of the events that take place every week in the mountains.   

This business is well positioned for stronger growth.  They have a great model, staff, equipment, relationships, and reputation.  Their Google star rating is strong.  They have less no bad debt because they take 50% up front and the remaining 50% due within 14 days of the event. 

The sales price is 1.37MM dollars with includes everything except the real estate, storage containers on site, and normal personal items.  The owner will be keeping his cash, AR, and will pay off all debts including the AP transferring the business debt free.  Big business in the mountains have a natural barrier to competition and sell for multiples above what you would normally find.  In addition, this business has a 28% net profit margin which means that new growth will be very profitable to the new owner.