Evaluating Heavy Truck Replacement Costs

Hi everyone,

I’m currently working on a deal for a business that is reliant on specialized heavy trucks for their operation. To ensure I account for future CAPEX needs appropriately, I’m trying to get a clear picture of the equipment’s remaining life and replacement costs.

I’ve already asked the seller to provide an equipment list including:

- Year manufactured and purchased

- Purchase price and estimated useful life

- Remaining life and salvage value

I’d love to hear advice from those who’ve been through similar situations on:

1. Are there additional details I should request from the seller to better estimate future replacement costs?

2. What’s the best way to validate the seller’s estimates during due diligence (e.g., working with appraisers, mechanics, etc.)?

3. Are there any rule of thumb or other frameworks you recommend for calculating long-term CAPEX planning for trucks?

Thanks!