22 Apr Acquisitions Anonymous: Buying a Carnival Rental Business with $1.3M Profit
This week on Acquisitions Anonymous, Michael, Bill, and Mills dive into a surprisingly profitable business in a notoriously low-margin space—bouncy house and carnival ride rentals. Operating out of Lawrenceville, Georgia, this $7 million asking price business boasts $3 million in assets, over 500 inflatables, 24 carnival rides, and $1.3 million in annual cash flow. The guys dig into the operational model, customer base, and whether the capital intensity justifies the valuation. Is this the Chick-fil-A of carnivals or a seller in over their head?
Key Highlights:
Breakdown of a $7M carnival rental business listed FSBO
$3M in asset value including Ferris wheels, inflatables, and zip lines
Annual net income of $1.3M from repeat B2B customers like schools and churches
Discussion of CapEx-heavy businesses and how they impact valuation
Exploration of potential growth into traveling pop-up models like “Big Bounce America”
How self-represented sellers can lose buyer confidence
Valuation insights: 3x cash flow + asset-heavy business = tricky deal
The guys’ take on recession resistance and customer loyalty
Importance of understanding tail risk and bounce house insurance
