How do I prepare an equipment rental business for sale?

A buyer of a rental yard is buying machines, records and relationships. Put as much of that on paper as you can before anyone asks. You may choose to start well ahead of listing, since some of this only shows its flaws when you try to write it down.

Build the fleet register

List every unit with a date on the register, its identifying numbers, age, use, condition and who owns or finances it. Add the service and inspection logs for each one. A buyer will want to see the machines, so make sure the yard is organized and the paperwork matches what is parked there.

Clear the financing and leases

Know which units carry a loan, a lease or a lender’s security interest. Gather the schedules and ask each lender what it requires if the units are sold or the lease is taken over. Ask your lawyer whether any liens apply, and plan the timing with the buyer’s lender.

Pull reports and list the accounts

Export the rental software reports a buyer will ask for, such as utilization by unit and revenue by customer. Prepare a list of your contractor accounts and note which ones are on repeat terms. Check that the reports reconcile to your financial statements, since a buyer’s accountant will.

Settle staff and handover

Decide what you want to say to your mechanics, counter staff and delivery drivers, and when. Offer to stay for an agreed period so customers meet the new owner with you in the room. A written handover plan helps a buyer see the business can run without you. See how to tell your employees.