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?

Reply by a lender
from University of North Carolina at Wilmington in Wilmington, NC, USA

Have you also consider the CAPEX need of the business? That should also be accounted for in the price as that will at some level be a cash outlay.

Reply by an intermediary
from The University of Chicago in Chicago, IL, USA

SDE###-###-#### and EBITDA###-###-#### difference is 243. W/o knowing why, it is difficult to comment. If owner salary allowance is 100 to 150, it would mean employees salary raise is 93 to 143. In general, it is not a good practice to bump up employee salaries dramatically, let alone doing so coming out the gate.

+15 more replies.

Join the discussion