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Broker Name:Ronald Cervelli
Broker Email:contactus@regalconsultants.com
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School Transportation Co.
(Services, Transportation)
Passaic County , NJ
Listed Price: $ 195,000
Listing ID: TRNS104

Listing DetailsGross Revenue: $ 473,960
Cash Flow: $ 50,000
FFE: $ 165,000 (Included in Price)
Inventory: $ 1,500 (Included in Price)
Reason for Sale:

The owner is retiring after many years of success in this service industry.


Training & Support:

The owner will remain post-closing for 60 days in order to supply an appropriate transitional period to the new operator. Also, if required the seller will supply additional training at a fair cost to the purchaser.


OperationsYear Established: 2007
Days & Hours of Operation: Mon.-Fri. 7:30am-3:30pm
Non-owner Payroll: $ 7,800
Employees: 7
Absentee Owner: No
LocationLease Expire: 0000-00-00
Lease Security: 1000
Monthly Rent: $ 1,000
Square Footage: 2500
Facilities:

This transportation business is located in Northern New Jersey and conducts its services for New Jersey counties and municipalities in the counties of Bergen, Passaic and Essex. The owner functions from his private home office and all vehicles are parked at a private commercial lot in Passaic County, New Jersey.


SummaryBusiness Description:

Profitable private school bus transportation company located in Northern New Jersey, with various routes for municipal and private school systems. The owner is retiring after many years in the industry and will remain and train the new owner operator. The company is approved with the New Jersey Department of Community Affairs to conduct transportation services in the state of New Jersey. The process requires each school bus company to bid with each municipal school system at various times during the year for yearly school routes. These routes are contracts for the nine-month school year period, special short-term routes or summer transportation programs. This company presently has nine school routes in three separate municipalities consisting of Bergen, Essex and Passaic Counties. The sale includes twelve van buses in excellent working condition. Their operation has an outstanding safety record, has an excellent on time performance level and their equipment is well maintained with a professional team of drivers. They are a family owned and operated company with over 10 years’ experience in school bus transportation and they understand the needs and concerns of the children and school systems they serve. This transportation industry requires licensing and government agency approval. This transportation business has seven licensed part time employees who are unaware of the pending sale and fully expected to remain post-closing, also monthly payroll is approximately $7,800. The business has an assignable commercial lease for the vehicles, which expires 2019-01-01 plus additional options, with a monthly rent of $1,000 and rent security $1,000. The business assets have an estimated value of $165,000 and the sale consists of a fully equipped commercial bus transportation company with twelve mini school buses and vans, phone system, accounting system, computers, licenses, software including all the necessary equipment to maintain the day to day business operation and a list of assets will be supplied to purchaser upon request. The business is active five days per week, with hours from 7:30 am to 3:30 pm. The 2017 school yearly gross income is estimated at $473,960 and the company will evidence a net yearly income of $50,000 plus based on an owner operator and prior to any future debt service. The business has been priced / valued at $195,000 which is based on a multiple of the net yearly income and the value of the specific business assets and seller financing has been conditionally approved to a qualified buyer with an appropriate down payment, collateral and credit rating. This is a dependable business opportunity and based on the asking price, required down payment and yearly net income, this business expects to supply a consistent investment return to the owner operator prior to debt service. Please do not disturb business, this sale is absolutely confidential, the employees are Unaware of the pending sale, all viewings are by appointment only and photo may not represent this particular business.


Competition:

There is limited competition, due to the difficulty of obtaining new state licensing, and the substantial cost of the vehicles. Also, the owner has agreed to supply a long term non-compete agreement to the purchaser.


Potential Growth:

The business presently has a limited marketing plan, no web site and if improved can further develop the business bottom line net income.


Financing/Terms:

Seller financing is available to a qualified buyer.