Business Description
The company, located in Pennsylvania (PA), is a tractor dealership that offers sales and service of compact tractors and related equipment and products to rural property owners. The company has been in business since 2004. It is currently up for sale to qualified buyers exclusively through Raincatcher. The company is focused on providing their customers with quality tractors and equipment to assist them in their farming needs. They have recently started to add a few more products for the small farmer including products related to animal feed and care.
The company carries new top brand tractors and equipment along with varied used tractors as well. The business is the only locally owned tractor dealership in its county, and does not have much in the way in terms of competition in the area. It has a strong and steady income history and significant market share of compact tractor sales in its county (40.7% for 2017). In addition to its dominance in sales, it is also known for its customer service. The company has maintained this consistent success year after year, with the owner not having to spend every day working on the business. The owner travels frequently, and the business runs smoothly without any hiccups during his absence as the general manager is able to run things without any necessary oversight or assistance. This could create a great situation for a passive investor looking to own a business without having to be overly hands on, or on-site every day of the week.
The global compact tractor market is expected to register a CAGR of 4% by 2022. There is a growing demand for these tractors on a global scale and here in the U.S. Small-scale “farmers”, many of whom have animals and crops for their own personal use, purchase these tractors to do the work on their land themselves. The increased number of new product launches in this market, and the increased use provide continued growth opportunities in this market.
The company does not carry any long-term debt and provides a great opportunity for a turnkey business in an industry that is on the rise.
Purchase Considerations:
- Well-established business of 15 years with an excellent reputation in the community and with top-tier tractor brands.
- Long-term, quality staff that handles operations with minimal supervision.
- Business that can run without need of constant ownership oversight
- Substantial growth potential through expansion of product line and digital marketing efforts.
- The business does not carry any long-term debt
- Opportunity for strong margins.
The company, located in PA, is wholly owned by its operator who plans to exit the industry following the transaction. The asking price is $500,000 for the business with an optional $300,000 of inventory. The real estate is available for lease, or valued at $525,000 for outright purchase.
