The Firm Business Brokerage Cortney Sells, President Phone: 402.998.5288 Confidential@TheFirmB2B.com ID#: CON021

FOR SALE: Midwest Rigging Contractor Assisting Clients with Machinery Installment, Removal, and Relocation

Heavy Lifting Company Serving Manufacturing, Utility, and Machinery Industries

Financial Overview

List Price: $3,146,000

Gross Sales 2015: $2,189,245

Owner Profit/Cash Flow 2015: $953,599

Profit Margin: 44%

Multiple: 3.3 *Multiples range from 1-5, with the average being 3

Valuation: 2015 Cash Flow x Multiple = Price

$953,599 x 3.3 = $3,146,876

Funding Example

Purchase Price: $3,146,000

10% Buyer Down Payment: $314,600 15% Seller Financing: $471,900 75% Bank Loan: $2,359,500

After all debt services the Net Operating Income (Profit) will be $544,242. This represents a 173% Return on Investment.

Description

A heavy lifting company serving manufacturing, utility, and machinery industries. This rigging business provides the lifting power necessary to move manufacturing equipment, turbines, printing presses, and much more! With 7 different lifts, this company is able to take on a wide range of jobs. These projects originate in Nebraska and Iowa, but with the many connections with long-haul trucking companies and expert technicians, this business can help their customers move anywhere in the country. Each project is assigned to one of two rigging crews. The crews consist of a working superintendent and 2-3 workers. Over 95% of the work is completed indoors, requiring special safety precautions. These crews are OSHA 10 certified to ensure the safety of all involved. They can put new equipment in place or load equipment for transport. When necessary, the business owners use the businesses well-established contacts to provide transportation and other technical services to their clients. A 2015 cash flow of $953,599 provided a 44% profit margin to the owners of this business. While only serving a limiting area and working on primarily smaller jobs worth $5,000-$8,000, this profit is impressive. Growth opportunities are abundant for this business and include expanding hauling operations and service area, as well as obtaining larger contracts, such as those related to medical equipment. After a down payment of $314,600, a buyer can expect a 173% return on investment. This is a Net Operating Income (Profit) of $544,242 for a new owner in the first year.

Next Steps

For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.

Assets Included in Purchase: $1,233,578

Equipment: $980,000 (5 Ford Trucks, $110,000; 4 Tractors, $180,000; 6 Trailers, $128,000; 7 Lifts, $562,000)

Intangible Assets: Presence Previously Established in 5 States: NE, IA, SD, KS, and MO.

A/R: $253,578

*amounts may vary

Business Information

Year Established: 2005, At Current Location Since 2008

Location: Eastern Nebraska

Service Area: Daily jobs are typically completed with-in 150 miles of location. Jobs have extended to Texas, New York, and California as well as into Canada.

Markets Served: Manufacturing, Utilities and Energy, Printing Services, and Machine Tools

Lease: 15,000 sq. ft. Warehouse

Reason for Selling: Planned transition to other business interests that are taking up more of the owner’s time.

Employees: 1 Office Manager; 2 Crews of 3 to 4 Workers, Crews include 1 Working Superintendent and 2 to 3 Workers. All staff are OSHA 10 Certified and take part in proactive safety training programs.

Hours: Monday – Friday: 8AM to 4:30PM

Seller Training Period: Up to a Year (If Desired by Buyer)

Growth Opportunities: Expand Hauling Operations, Expand Service Area, Seek Larger Contracts, Obtain More Medical Equipment Contracts (ie. MRI and CAT Scan Machines)

Current Owner’s Responsibilities: Business Administration and Project Quoting (Only when needed)

Last Revised [4-14-16] by [SB]

- CONFIDENTIAL -

The Firm Business Brokerage ______________________________________

Business Overview

RE: Midwest Rigging Contractor Assisting Clients with Machinery Installment, Removal, and Relocation

A heavy lifting company serving manufacturing, utility, and machinery industries. This rigging business

provides the lifting power necessary to move manufacturing equipment, turbines, printing presses, and

much more! With 7 different lifts, this company is able to take on a wide range of jobs. These projects

originate in Nebraska and Iowa, but with the many connections with long-haul trucking companies and

expert technicians, this business can help their customers move anywhere in the country.

Each project is assigned to one of two rigging crews. The crews consist of a working superintendent

and 2-3 workers. Over 95% of the work is completed indoors, requiring special safety precautions.

These crews are OSHA 10 certified to ensure the safety of all involved. They can put new equipment in

place or load equipment for transport. When necessary, the business owners use the businesses well-

established contacts to provide transportation and other technical services to their clients.

A 2015 cash flow of $953,599 provided a 44% profit margin to the owners of this business. While only

serving a limiting area and working on primarily smaller jobs worth $5,000-$8,000, this profit is

impressive. Growth opportunities are abundant for this business and include expanding hauling

operations and service area, as well as obtaining larger contracts, such as those related to medical

equipment. After a down payment of $314,600, a buyer can expect a 173% return on investment. This

is a Net Operating Income (Profit) of $544,242 for a new owner in the first year.

Business Highlights

Year Established: 2005, At Current Location Since 2008

Location: Eastern Nebraska

Service Area: Daily jobs are typically completed with-in 150 miles of location. Jobs have extended

to Texas, New York, and California as well as into Canada.

Markets Served: Manufacturing, Utilities and Energy, Printing Services, and Machine Tools

Employees: 1 Office Manager; 2 Crews of 3 to 4 Workers, Crews include 1 Working Superintendent

and 2 to 3 Workers. All staff are OSHA 10 Certified and take part in proactive safety training

programs.

Hours: Monday – Friday: 8AM to 4:30PM

Current Owner’s Responsibilities: Business Administration, and Project Quoting (Only when

needed)

Due to high barriers to entry in start-up costs for equipment, there is minimal competition in this

industry

Financial Highlights

List Price: $3,146,000

2015 Gross Sales of $2,189,245

o See chart below for a categorized sales overview

2015 Cash Flow of $954,599

2015 Profit Margin of 44%

$1,233,578 worth of assets included in the purchase

o Equipment: $980,000 5 Ford Trucks - $110,000 4 Tractors - $180,000 6 Trailers - $128,000 7 Lifts - $562,000

o A/R: $253,578

*amounts may vary

Most projects completed by this business are only $5,000 to $8,000 in value. This means that this

business has many clients and are not dependent on large contracts. While smaller business is important,

this business currently has 2 bids out for jobs worth over $200,000 each. This shows that the business is

able to take on jobs both big and small.

This business wins 65% of all bids placed. Having No Bid Required is to say that clients choose this

business without asking for a bid price.

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price

of the business.

The formula used is as follows:

2015 Cash Flow x Prescribed Multiple = Fair Market Value

Project Obtainment Breakdown Daily Projects (2 Weeks Out) Large Projects (6 Months Out)

Bid Required 30% 90% No Bid Required 70% 10%

10%

20%

70%

Sales Overview

10% Client Relocation

20% 1 Off Large Jobs (ex. MachineJacking)

70% Replace/Remove Equipment

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.

With this information, the computation is as follows:

$953,599 x 3.3 = $3,146,876

The Fair Market Value found above positions the business List Price at $3,146,000

Funding Example

Purchase Price: $3,146,000

10% Buyer Down Payment: $314,600

15% Seller Financing: $471,900

75% Bank Loan: $2,359,500

Seller Financing 5 year term at a rate of 4.50% equals an annual loan payment of $105,572

Bank Loan 10 year term at a rate of 5.25% equals an annual loan payment of $303,786

After business expenses and annual loan payments, a buyer with a down payment of $314,600 would

retain a profitable net operating income of $544,242 which results in a 173% 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 $3,146,000 with the terms listed above, the coverage ratio is 2.33. Please

note that the decision of whether to extend a loan on any particular sale belongs to the bank, and this

document does not guarantee specific terms or verify that financing is available.

Attached you will find the following:

Business Summary

Identifies important business information in an organized quick-reference format

Cash Flow Analysis

Cash Flow is the owner profit, which is the sum of business net income plus any owner perks and any

non-onward going expenses.

I have also included a Confidentiality Agreement for your review and signature. As with all of our businesses, this

Midwest Rigging Contractor Assisting Clients with Machinery Installment, Removal, and Relocation is being

sold confidentially. Additional information including name, location and financial documents can be forwarded to

you upon receipt of the signed Confidentiality Agreement. This Confidentiality Agreements protects Buyer, Seller and The Firm Business Brokerage.

The Firm currently has over 90 cash flowing businesses available. If you find that this is not a fit for you, please let us know and we would be happy to provide you with other opportunities.