A Texas equipment rental company sold for $7.5M at 4.5x EBITDA. Rental businesses are asset heavy, so buyers value both the earnings and the fleet behind them, and they spend much of diligence on fleet age, utilization and maintenance records.
Buyers review the fleet list, hours, maintenance records and often a third-party appraisal. A well-maintained fleet supports the price.
Utilization shows how hard the fleet works. High utilization with stable rates is one of the strongest value drivers in rental.
A broad base of contractors, industrial accounts and repeat customers reduces the risk of losing one large account.
Equipment financing is normally paid off at closing. Buyers and sellers need a clear picture of liens early so proceeds are not a surprise.
We start with a valuation grounded in closed deals, then recast the financials and build the confidential information memorandum buyers will review.
The business is presented anonymously to qualified buyers from our network of 7,950+ and on major marketplaces. Buyers sign an NDA before they learn the name.
We run several buyers through the process at the same time, so letters of intent arrive close together and price is set by competition.
We manage diligence requests, keep the deal on schedule and work with the owner's attorney and CPA through closing.
Equipment rental companies are usually valued on a multiple of EBITDA, supported by the value of the fleet. The two equipment rental companies on our record sold at 4x and 4.5x EBITDA, including this $7.5M Texas business.
National and regional rental companies expanding their branch networks, private equity backed rental platforms, and contractors or dealers adding rental revenue.
In most rental company sales the fleet is part of the business being sold and is reflected in the price. Any equipment debt is typically paid off from the proceeds at closing.
Most of our transactions close in 6 to 9 months, and most clients receive a letter of intent within 60 days.
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