SE of Denver Used Car, ATV, UTV, Motorcycle,Boat  

Location: On the main street of a fast growing small town SE of Denver

The trailing 12 months to April 30, 2026, revenues were 3.57M with 228K in earnings. 

The owner States " We carry many types of new and used inventory for your work and recreation needs. Our inventory is constantly changing and there is always something new to check out. We can ship nationwide and pride ourselves on having fair pricing.  For Sellers, we also buy all sorts of items and take consignments."

Both used car dealerships and equipment rental companies typically sell for above normal multiples for many reasons.  The 625K sales price is only 2.74 times the trailing 12 months earnings to April 30 2026.  This includes the FF & E and the rental equipment, but you must add their cost of for sale inventory to get the final sales price.  As of May 15th, they have 360K in “owned” inventory for sale at their cost which creates a total sales price of 985K.   Inventory should be thought of as more valuable than cash for the following reasons:  The more that the business has in inventory at cost, the more you will sell for profit right after the closing.  In addition, this allows you to finance the purchase of the inventory through a bank loan as part of the total purchase price.  When you sell the inventory, you will recover the cost PLUS a profit.  This will also reduce or eliminate the need for working capital as you will turn inventory into cash every day from the closing date forward.

This is great timing for a buyer to buy this because the business is trending the same as 2023 and 2024 through April of 2026.  Plus, they offer 3rd party financing that they do not make any money directly off of BUT they have recently partnered with a local bank to provide financing whereas they are paid to refer the customer.  

The owner works 40 hours a week and is Selling because he wants to retire to spend more time with his family.  

The business is in a rural area that has large properties, horse ranches, farms, and most importantly is one of the fastest growing areas in Colorado which makes the demand for rentals like their skid steers, trenchers, augers, etc and the purchase of ATVs, UTVs, and utility trailers very high.  They are also a small dealer for several lines of trailers, UTV’s, etc.   

Growth Opportunities: 

1. Increasing the inventory:  Adding a leased space nearby on a property where inventory and rental equipment can be stored with quick and easy access for the dealership.  Since 75% of demand comes from online and the cost to store the extra inventory will be substantially less than their main property, it makes sense to add inventory this way as opposed to a much more expensive property.

2. Adding a 2nd location:  This company has learned exactly what is a welcome fit on a small rural towns main street near the middle of town and what to sell.  There are hundreds of small towns in areas that will see heavy growth for many years.

3. Separating the rental business from the dealership would add more space for both businesses and would allow for more rental equipment like lifts, skid steers, small excavators, trenchers, forklifts, ladders, heaters, generators, lighting, and for the cooler months, generators, snowblowers, and heaters.  Since most of their rentals are reserved online, the rental business location would not have to be an expensive main road location.   The rental side of the business has a lot of recurring revenues which increases the valuation of the entire business. 

4. Increasing exposure through additional signage and an additional vehicle ramp to showcase a 2nd vehicle/trailer/UTV at the low point of their street exposure.

5. They only spent 34K in marketing last year which compared to their 3.57M in revenues which is just over 1% of revenues.  They suspended their paid google promotion of our websites this past winter but the owner believes that should be resumed.  There are many things that the new owner can do to increase the marketing online including adding Next Door to the advertising which is big in rural areas.  There is also cooperative agreements with garden centers like Walmart, adding a separate website for rentals, etc.  

6. Model the business to always have at least one of the highest demand, and most popular inventory items at the front of the lot which are classic or very unusual vehicles.  They not only draw attention but always sell quickly.

7. Adding financing options that pay the business owner.   They just secured third party financing which will now pay them 2% on the amount of each loan.  They have also signed with a rent to own company for new trailer “financing”.  This allows them to get paid for the entire piece of inventory up front but the buyer can pay over time to the financing company.  This will allow them to carry more expensive inventory and the ability to sell more of the inventory.

8. Add more dealership lines of new equipment and trailers.  

9.   Add small engine and powersport repair.  They get requests for this frequently and have the tools, 2 bays in the Winter, and 3 bays in the Summer with the use of an easy up cover.  

The new owner will need to have or to get a franchised new car dealer license to sell new trailers and a power sports license.  The new owner should have both sales and marketing experience and have the aptitude to learn how to properly manage the business.  There are zero special skills required for the rental equipment side of the business because the rental equipment manufacturers, owner transition, online training videos, and current employees will train them on how to safely use the rental equipment.

You also get approximately 140K in current value assets.  This includes the 79K in current value rental equipment, and 61K in the other assets including office furniture/supplies, small tools and equipment, and an F250 pickup, trailer, and a 20 foot container.

Both Dealerships and Equipment Rental companies are “Fun” business to own.  I have sold several of them because it is nice to represent happy owners whose business will be popular. 

There is 50 miles between Denver and Colorado Springs which is part of Colorado’s “Front Range” that is expected to be fully developed someday with more than 30 small towns with large property homeowners, builders, remodelers, ranchers, farmers, etc often don’t have all of the equipment that they need for specific things year round, and prefer supporting a local business which is convenient.

A Sales Price of 625K which is only 2.74 times the earnings is a low multiple for either a used vehicle dealership or an equipment rental company plus whatever his cost of his current inventory is(not rental inventory).   The business is being offered with the Sellers keeping their cash, AR, and they will pay off all debt including the AP.   

Other Details:

They have a great reputation for the quality of our work, dependability, accurate bidding, and for fair dealings.  The seller will agree to full Reps and Warranties to a solid legal and business standing.   They have a great record for safety (OSHA).  

The company has 3 trustworthy, competent, and reliable employees other than the owner.  They have room for new employees if the new owner wants to grow this company.  The Sellers believe all employees love their jobs and will all stay after the transition.

Their location details are:  He rents their location for only 3,500 a month which is a “Gross” short term lease.  The landlord is open to a longer-term lease and has only asked for the ability to increase the rent at slightly over the increases that are expected in property taxes over time.  This is a very good deal.  Leases in and around Denver would be significantly more expensive.  The property is .26 acres and has an old house with approximately 2200 square feet upstairs that is used for sales, the office with 3 work stations, the main bathrooms, and a small showroom that had some accessories, and another 1000 square feet downstairs which has two garage doors and is mostly used for storage, repairs, and maintenance.