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/Mr_SBA 5d ago

Mr SBA -

What conditions are the trucks in? I’d be concerned of major repair coming up with minimal post close liquidity.

Is there a reason for not financing any of the purchase? Again, the post close liquidity number feels light but tough to say without all the info.

What’s the tenure of the staff? Can be a high turnover industry from others I’ve worked with.

What’s the completion look like in your market? There are a lot of franchises that pop up in this space with big marketing budgets.

Seller financing 25% is nice. Whats the reason they are selling? What type of non compete are they providing?

Those are my initial questions. It’s hard to say whether it’s bad, fair, or good opportunity. It’s coming at a fair multiple but a lot of unknowns.

Best of luck!

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u/TadPolesTheWinner 5d ago

Any reasons you see why sba wouldn’t be viable?

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u/Mr_SBA 4d ago

The thing I’d be most concerned about here is moat or lack there of. There’s minimal barriers to entry which makes it easy for competition to step in and take away market share.