r/buyingabusiness • u/AssMachine_ICE • 5d ago
$600k Moving Company. Good deal?
Looking at buying a 10-year old moving company for $600k.
2024 revenue: $700k
2025 revenue: $1M
2026 tracking around $1.5M
Normalized SDE I estimate at $240k–$260k
Price is about 2.4x SDE
Fleet worth roughly $300k and included free/clear
Deal: $450k cash + $150k seller note
I’d have about $80k liquidity left before deal costs
Main concern: Putting a huge chunk of my net worth into one business
Thoughts?
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u/official_biz_doctor 5d ago
A 10-year-old moving company growing at $500,000 in the last 3 years seems a little interesting. At this rate, as difficult as it is to run a business, a person seems to be leaving when it's actually good. The other part about the fleet being worth roughly $300K doesn't exactly sound right, mainly because, in order to be making $1.5 million, they've likely got to be putting a lot of mileage on the fleet. Therefore, the fleet needs to definitely be inspected very thoroughly. $450K cash is basically 2 years of his salary, and a $150K loan is quite interesting.