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 May 31, 2026, revenues were 3.07M with 198K in earnings.  The Sales Price has been lowered to 390K plus his cost of inventory.

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 390K sales price is now less than 2 times the trailing 12 months earnings to May 31st 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 800K.   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.

The business is made up of the dealership side and also a small portion of the revenues and profits are from equipment rental 6 months out of the year. The lot is at an angle slopping away from the main street and this helped him to decide to add a rental business in the lower section where it is difficult to see dealership inventory.   He understands that the new buyer might move the rental business increasing the exposure and ability to carry more rental equipment or shut it down allowing the new owner to sell the rental assets and keep those proceeds and then be able to use the rental portion of the property to carry more inventory for the dealership side.   Either way, it will be the new owner’s choice.  There is another lot available close by and the price for another main street prime location lease would be nowhere near the cost in Denver.  

This is great timing for a buyer to buy this because the business is trending the same as 2023 and 2024 through May 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.   This can be improved for the benefit of the new owner. 

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.