FOR SALE MOVING BUSINESS 8905 NOWELL STREET, CHILLIWACK - ESTABLISHED BUSINESS - CDW & Associates
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FOR SALE
MOVING BUSINESS MLS C8011452
8905 NOWELL STREET, CHILLIWACK $600,000
CDW
& ASSOCIATES
ESTABLISHED BUSINESS
SUBJECT PROPERTY
T
FOR SALE
MOVING BUSINESS MLS C8011452
8905 NOWELL STREET, CHILLIWACK $600,000
Office: 1,000 SF Business:
Warehouse: 7,000 SF Morrow’s Moving & Storage Allied Van Lines
Other: 2,000 SF Bowe’s Pickfords North American Van Lines
Approx. Gross Sales: $1.28M Number of Employees: 8 FTE
Approx. Adjusted Net Profits $160K Approx. Value of Leasehold $10K
Improvements
Approx. Value of Goodwill $300K Approx. Value of Equipment $350K
WAREHOUSE
WAREHOUSE
FOR SALE MOVING BUSINESS MLS C8011452 8905 NOWELL STREET, CHILLIWACK $600,000 MORROW'S MOVING & STORAGE ׀BOWE'S PICKFORDS INTRODUCTION Morrow's was incorporated in 1976 and Bowe’s was incorporated in 1952. Their primary func�on is to operate as a moving company. The company is leasing an 7,000 sq. �. warehouse in central Chilliwack. This lease is month to month. The existence and opera�on of both companies is based on the ideal that they are able to give mul�ple quotes on the same move, thus cornering a larger percentage of the market share. This is achieved by submit�ng two separate quotes for the same job, one from Allied Van Lines, which the rights are owned by Morrow's Moving and Storage, and one through North American Van Lines, which the rights are owned by Bowe’s Pickfords. EMPLOYEES AND STAFF 5 - 8 full �me staff - slightly varies depending on the �me of year and amount of work available. The breakdown of this staff is inclusive of: (The total accumulated average hours invested by the • one sales rep (current owner), owner and the son is approx. 40 hours per week.) • dispatch (current owner), The company also owns opera�ng authori�es • 3 - 4 full �me drivers/swamper. in the U.S.A and have 3 qualified US drivers. COMPETITION The company’s main source of compe��on is a local company opera�ng under the name of United Moving and Storage located several blocks away. There are several other smaller moving companies opera�ng in the area but seem to be a non-issue as far as percentage in the market place. SOURCES OF BUSINESS Source of business is based on referrals and exis�ng contracts. Since both companies have been around for mul�ple decades, a large source of there business is from repeat customers, rela�onships with realtors, adver�sing, and referrals. Government contracts are currently in place, which account for between $100K and $130K in gross revenue per year. There are addi�onal contracts in place with other en��es but these are verbal contracts. Such verbal contracts exist, for example, with Amazon which generates between $100K and $200K per year in addi�onal gross revenue, based on the volume of shipment. This current year, the Amazon agreement is averaging between 5 and 7 moves per month. The company has been recognized for the past decade by Allied Van Lines of Canada as consistently being in the top 3 in sales in all of Canada for markets of 10,000 or less people as well as received numerous quality agent awards. IN SUMMARY The owners, a�er many years in the moving industry, are looking to re�re and move to the east coast. Over the past five years they have slowly scaled down their responsibili�es within the company and the current sales office assistant, who has been with the company for a very long �me, handles most of the day to day opera�onal necessi�es. As a result, this business is, to a degree, a turnkey opera�on, which is self sufficient with the staff on hand. The current owners are more than willing to stay on for a few months to help train the prospec�ve new owner. The owner will consider a share sale.
FOR SALE
MOVING BUSINESS MLS C8011452
8905 NOWELL STREET, CHILLIWACK $600,000
C !
It has long been a predominantly agricultural community (you have tried some of Chilliwack
famous corn right?), but with popula�on growing every day, it has become more urban and a
hot spot among the locals in the Fraser Valley. The ample space and many ac�vi�es,
Chilliwack’s popularity is growing yearly – with hundreds of thousands of people visi�ng
Chilliwack every year, it’s definitely the place to be!
ECONOMIC OUTLOOK LOCATION
Residen�al housing starts in Chilliwack in the 3rd Chilliwack is a 1 hour drive from YVR,
quarter were 20% ahead of last year’s housing Vancouver’s International airport and only a
starts on course to an es�mated annual total of 30 minute drive from YXX, the
between 450 and 500 units. At about two-thirds International airport in Abbotsford. Easy to
of the past 10 years’ average, this modest pace of get to off the #1 HWY, and there is ample
construc�on is in line with the Lower Mainland transportation to get to Chilliwack and
and na�onal housing start trends. Nevertheless, around town once here.
it is trending up, leaving the economic low of the Being surrounded by mountains and
2009 recession. This op�mism is supported by recreational areas is what makes Chilliwack
the rela�vely strong growth of the US economy, the prefect Fraser Valley location!
which shows resiliency and is ready to move both
Canada’s and BC/Lower Mainland’s employment
and business ac�vi�es into the next growth
cycle, notwithstanding some global risks.
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