What it costs to buy an equipment hire business in Australia
Hire businesses list from around $45,000 to $3.9 million in Australia, with roughly 280 hire services businesses on the market at any time. It is one of the few acquisitions where the asset you are buying is also the thing that earns, which changes how you value it and how you fund it.
What hire businesses sell for
| Recent listings | Asking price |
|---|---|
| Hire and rental businesses, full national range | $45,000 to $3.9m |
| Plant and equipment hire, circa 6 years trading, construction, landscaping, residential and rural | $375,000 |
The range is enormous because a hire business is really a fleet with a customer list attached, and fleets vary from a few trailers and compactors to yards of excavators, scissor lifts and site huts.
The fleet is the valuation
Unlike most acquisitions, a large share of what you pay is tangible and re-saleable. Get an itemised fleet list with make, model, year, hours and current market value, and price the goodwill as what sits above that number.
Then check the age profile. A fleet where most units are near the end of their hire life is a business that needs recapitalising, and the replacement bill lands on you. Our guides to excavator prices and access equipment fleet costs give current market values to check a fleet list against.
Utilisation is the number that decides everything
A big fleet sitting in a yard is worse than a small fleet that never stops. Ask for utilisation by unit, not an average across the fleet, because an average hides the six machines that have not moved in a year and are still costing you registration, insurance and space.
Ask about the customer mix too. A business carried by two builders is exposed in a way that one serving dozens of trade accounts is not, particularly through a construction slowdown.
Financing a hire business purchase
This is the acquisition type that funds most easily, because the fleet is genuine security. Equipment finance against the units themselves is usually the bulk of the deal, and it prices better than goodwill lending does. The goodwill and customer list fund as business acquisition, which wants property or a deposit behind it.
If the fleet needs recapitalising after settlement, arrange that facility with the purchase rather than separately, because a lender looking at the whole picture usually structures it better. Tell us the fleet list and the purchase price and we will split it across the panel.
This is general information only and not financial, credit, or tax advice. Prices are indicative market listings, not Ventas figures, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.
Frequently asked questions
How much does an equipment hire business cost in Australia?
Listings run from around $45,000 to $3.9 million. An established plant and equipment hire business with about six years trading and a customer base across construction, landscaping, residential and rural work listed at $375,000.
What should I check before buying a hire business?
An itemised fleet list with make, model, year, hours and market value, then utilisation by unit rather than a fleet average. An average hides the machines that have not moved in a year but still cost you to hold.
How do I value the goodwill?
Price the fleet at current market value first, then treat whatever the asking price sits above that as goodwill. That makes the goodwill visible instead of buried in a single number.
Can I finance an equipment hire business purchase?
Yes, and it is one of the easier acquisitions to fund because the fleet is real security. Equipment finance usually covers the bulk of it at better pricing than goodwill lending, with the customer list funded as business acquisition.
Get your number from the lender panel
The figures above are indicative. Tell us what you are buying and we will come back with the real rate and repayment, usually within a day. No upfront fees and no credit check to get a quote.
Licence, freehold and funding, read together
Tell us the LPO and whether freehold is included and we will structure it, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.