05 May Acquisitions Anonymous: $11M Trailer Dealership: Great Business or Sketchy Add-Backs?
This episode analyzes a Midwest trailer dealership generating roughly $11.4M in revenue but only $354K in reported EBITDA, with an asking price between $5M and $7M. At first glance, the valuation appears unusually high—around 14x earnings—until the hosts discover additional financial details suggesting the owner may be taking large shareholder distributions that distort the reported profit numbers.
Key Highlights:
$11.4M revenue, $354K EBITDA, asking $5M–$7M (≈14x multiple)
Large inventory requirements likely driving valuation and financing complexity
Possible hidden earnings via shareholder distributions
Commodity product with steady demand but limited differentiation
Requires deep diligence on accounting practices and working capital
