New equipment sales, service, and parts.

We are pleased to present an outstanding tractor and outdoor power equipment business that has
served area residents for over 75 years. The seller has decided to retire and transition his successful
operation to a new owner operator.

The business has been a model of consistent performance over the years with a significant increase in
revenue and profits since 2019. Located in an attractive, organized and well-maintained building, it has
great visibility on a busy highway near the “gateway to the north” on the eastern side of Michigan. The
real estate is not included in the sales price but is available for lease or purchase if the buyer desires.

The company has several diverse revenue streams including new equipment sales, service, and parts. It
offers an established and trusted OEM tractor line (under 100 hp) along with a well-known line of
outdoor power equipment including lawn mowers, trimmers, chain saws and snow blowers. They also
offer a popular line of quality off-road vehicles. Service is another important revenue stream as many
area dealers of new equipment do not offer repair and warranty options. Spare parts are carried in
inventory for over 10 brands of equipment.

The customer base is loyal and long term with many of them returning for more than 30 years or more.
Another major customer group includes owners of second homes who travel north to their cottages
throughout the year.

Revenues could likely be increased by developing a mobile service department and establishing an
online part sales program. The addition of another OEM equipment line would broaden the product
offering and could also increase sales. The business has an excellent website which gives customers
insight into the company’s equipment and service offerings.

The business comes with a management team in place including a general manager to oversee daily
operations. The owner has agreed to stay on for up to a one year transition period if desired by the
buyer to help with training, customer retention, etc.

Over the past three years the company has had average annual revenues of over $4.7 million which
resulted in an average annual SDE (SDE=Sellers Discretionary Earnings – the normalized cash flow
available to pay an owner/operator and service dept) of $336.000 over the same three-year period.
Annual revenues in 2021 and 2022 increased an average of $ 700,000 (15%) compared to the previous
year. For 2023, net income has increased over 70 % from the previous year.

With a favorable SDE multiple of 3.3x, the business is attractively priced at $ 1,295,000. The seller
envisions an asset sale in which he retains cash and A/R while retiring all liabilities. The buyer receives
the goodwill of the business, all fixed assets and approximately $175,000 (cost basis) of inventory. For a
qualified buyer the seller will carry a meaningful six-figure note.

A typical deal for the purchase of the business looks great: with $ 130,000 (10% of purchase price) buyer
cash, a matching $ 130,000 seller note, and the balance financed by an SBA term loan. Total annual debt
service will be approximately $164,000 which would result in a current post-debt discretionary cash flow
for the buyer of $240,000 in 2023.

If you are searching for a successful high cash-flow business (with significant barriers to entry) located in
a growing and desirable region of Michigan, this business represents an exceptional opportunity.