The Business:

With nearly 8 years in business and hundreds of loyal repeat customers, Rent Wenatchee serves a wide range of the special-events market (weddings, graduation, trade shows, and other commercial events). Fees for support equipment (Enough to support 1,200) typically range from $500 to $3,500 per event, with most of the company’s cash flow tied to peak rental months of May through October. The distinctive assets of this company are tables, chairs, tents, linens, and all forms of dinnerware. All equipment is in good useable condition with many years of life expectancy. The company also owns two trailers, rolling storage equipment and transport racks to make delivery a breeze. The equipment helps support and store product providing easy rolling transport to and from events. Website design, name, and logo are available. Standalone party rental management software is included in sale. Owner is looking to move into other areas of business.

Price:

$85,000. Seller financing is available with $25,000 down.

Outlook:

The best reason to get involved with a party rental company is the company’s growth potential. Its current owner set it on a fast-growth course starting in 2015 mainly by aggressively pursuing new customers, including churches, colleges, and government agencies. Rent Wenatchee is becoming a well known name in the valley with a respected reputation. The company’s sales have increased by 64% since 2015, and to make this new growth more manageable, the company recently started utilizing a party rental management platform. The owner estimates that this new customer order system has resulted in half the effort & time necessary per customer order. As for future growth, a buyer could branch out into other cities and counties, which might help improve the current cash-flow by increasing the booking season and add new products to the limited rental list of tents, tables, chairs, and so forth. The current owner has expanded into the Chelan area in the past 2 years with Rentlakechelan.com.

Price Rationale:

Equipment-rental companies currently sell in the range of 95% to 100% of sales, which means this company is worth $95 to 100 thousand. The kinds of factors that a prospective buyer should look at include the age of the equipment (pretty good here, since this equipment averages between 4 to 15 years of age.

Pros:

Enough equipment to support about 1,200. We have a number of loyal customer and a proven continuous growth record throughout 8 years.

Cons:

There’s always the risk of the unexpected. (which, for this company, will probably take the form of local competitors, of which there are a few trying to vie for business). To stay dry, keep up those cost-control initiatives and, above all else, look for ways to broaden your market.

Interested in owning your own rental company?

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