What Is My Equipment Rental Business Worth?

Equipment rental businesses benefit from the growing trend of companies renting rather than owning heavy equipment. The combination of recurring rental revenue, tangible assets, and construction industry demand makes these businesses attractive.

Typical Valuation Ranges

Most equipment rental businesses sell for 2.5x to 4x SDE.

Factors that push toward the higher end: Modern, well-maintained fleet, diversified equipment types, long-term rental contracts with contractors, strong utilization rates (60%+), revenue above $1M, delivery and service capabilities.

Factors that push toward the lower end: Aging fleet needing replacement, low utilization rates, seasonal-only demand, owner manages all operations, concentrated customer base.

Key Value Drivers

Fleet condition and value — equipment is the core asset. Age, maintenance records, remaining useful life, and fair market value of the fleet are scrutinized by buyers.

Utilization rate — what percentage of your fleet is rented at any given time. 60–75%+ utilization indicates healthy demand and right-sized inventory.

Rental contracts — long-term contracts with construction companies and industrial users provide revenue predictability.

How to Increase Your Value

1. Maintain your fleet. Documented maintenance records and modern equipment maximize asset value.
2. Build long-term contracts. Recurring rental agreements with contractors and companies provide stability.
3. Optimize utilization. Right-size your fleet to maintain high utilization without turning away business.
4. Add delivery and service. Delivery, setup, and maintenance services increase per-rental revenue.
5. Diversify equipment types. Offering a range of equipment (earthmoving, aerial, compact) serves more customer needs.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.