Past Project

Specialty Equipment Leasing


Spokane, WA 99201 US
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Transaction Details
Purchase Date
Transaction Type
Consulting
Buyer
Confidential

Case Study

Description

This family owned company has been a direct fund lender in the specialty equipment leasing niche for more than 30+ years. Company has enjoyed an illustrious position of picking and choosing the quality and number of customers in their niche. They conduct business and are licensed across more than 30 states. They use a combination of self-financing and a bank credit line. Enjoying a 30-40% adjusted EBITDA using a mix of self-financing and LOC and a 45-55% adjusted EBITDA using self-financing.

Competition

The Company enjoys a stellar reputation nationwide with limited competition. Many competitors have gone out of business by losing site of their respective formulas and trying to aggressively take market share with smaller margins. This has opened up even more potential market across the country.

Growth and Expansion

Sellers feel the growth potential is only limited by new owner's marketing and cash or credit limit. Current owner's do not use any of their own cash to initiate laons/leases but new owner's could pick up an extra 5-7 points by eliminating the use of a credit line. Sellers have polled the current market finding more than $25M in potential leasing contracts that meet their strict niche. Expansion beyond this niche or adding additional services such asiInsurance would be some of the avenues for growth.

Reason for Selling

Part of a planned phase out of this family business unit.

Support and Training

Key personnel would prefer to stay on and Sellers are willing to offer extended consulting and/or sit on the board allowing new management to continue tapping into their extensive 30+ years of experience.