Fleet Repair Company with intent to submit LOI

July 29, 2025
by a searcher from Northwestern University - Kellogg School of Management in Chicago, IL, USA
Hi All,
Currently looking at submitting an LOI this week on a Fleet and Heavy Equipment Repair facility in Michigan. Quick synopsis:
Adv. Price: $3.5M (real estate optional at $2M)
2024 Rev: $2.8M (3% growth from previous year)
2024 EBITDA: $759k
2024 SDE: $993k
Adjusted EBITDA post sale (my salary and salary increase for underpaid employee/relative): $743k
Given the adjustment, the company is a bit overvalued, but would love feedback on if I am looking at this correctly. Current model with 87% debt and 5% seller financed isnt returning the most favorable DSCR. Any considerations or thoughts on how to structure the deal? The obvious would be more equity or a lower PP, but any other thoughts?
from University of North Carolina at Wilmington in Wilmington, NC, USA
from The University of Chicago in Chicago, IL, USA