Well-Established Diesel Service Company

Business Overview:

This well-established diesel service company specializes in the full aqueous flushing of Diesel Particulate Filters (DPF), Diesel Oxidation Catalyst (DOC) units, Selective Catalytic Reduction (SCR) systems, and Exhaust Gas Recirculation (EGR) systems. They are the exclusive RECORE facility in Colorado, offering a revolutionary service that simplifies diesel engine maintenance and significantly reduces costs. With the capability to RECORE over 3,400 different parts, the company provides a service range unmatched by dealerships or aftermarket companies. Serving a diverse clientele that includes major diesel fleets, municipal fleets, and individual diesel vehicle owners, the company counts notable clients such as RTD, SAIA, XPO Logistics, and FedEx Freight among its regular customers. The company’s ability to restore DPF units to OEM specifications, coupled with a one-year warranty on all cleanings, has earned it a solid reputation for delivering fast, efficient, and high-quality service. They offer complimentary pick-up and delivery, ensuring a typical turnaround time of 24 hours or less critical for minimizing vehicle downtime and avoiding the significant financial losses associated with non-operational trucks. The company's revenue stream is well-diversified, with approximately 50% of sales generated from RECORE services, 40% from DPF cleaning, and smaller contributions from DOC, SCR, and EGR cleaning, as well as product sales. The top ten clients account for less than 23% of total sales, reflecting a stable customer base with minimal dependency on any single client. Despite a recent slowdown in the broader trucking industry, the company continues to maintain steady business due to its strong customer relationships and reputation for excellence. With promising expansion opportunities, including hiring a full-time salesperson, investing in advanced equipment, and diversifying services, the company is well-positioned for continued growth in the dynamic diesel service market. The introduction of RECORE technology and anticipated stricter EPA emissions regulations further secure its competitive edge.

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Market Competition and Expansion:

The Company is well-positioned for growth with several promising expansion opportunities. Hiring a full-time salesperson could significantly boost sales by expanding the customer base and increasing market penetration. Investing in new, advanced equipment would enhance service efficiency and capacity. Additionally, introducing sensor sales and offering filter removal and reinstallation services could diversify revenue streams, providing new avenues for business growth and customer engagement.By maintaining a clear focus on its strengths and strategically expanding its services, the Company is poised to capitalize on future opportunities, ensuring continued success and growth in the dynamic diesel service market.

The introduction of RECORE technology has been a significant industry innovation, providing cost-effective solutions that greatly benefit diesel customers. While the rise of electric trucks is on the horizon, they are not yet a significant competitive threat due to current range limitations. Moreover, stricter EPA emissions regulations are anticipated to sustain and even increase the demand for diesel engine servicing, securing this Company’s position in the market.

Reason for Selling:

Pursue other interests

Additional Details:

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