What is a moving company worth?

BDC’s guide to selling a business describes earnings-based valuation methods, which determine the valuation based on past results and forecasted cash flow or earnings. For a moving company, the trucks, any storage space and the name all matter, but so do the crews, the sources of bookings and a safety record that lets the fleet keep operating. Two companies with the same revenue may be worth different amounts, depending on who holds the customer relationships, how the work spreads across the year and what shape the fleet is in. This guide explains how a buyer reads those differences. It gives no figures, because a number depends on one company’s own records and belongs with a qualified valuation professional.

Where the bookings come from

Work can arrive from repeat sources, such as realtors, corporate relocation programs and storage clients, or from one-off customers who found the company online. Neither is better by definition. The question to ask is how much of the work is tied to the owner personally. BDC describes its business purchase loan as meant for an existing business with revenue and an established client base, so be ready to show that customers will still be there after the sale. Write down your top referral sources and who deals with each.

What gets discounted

BDC’s guide to selling a business says you will not get full value if you are not maintaining your equipment or there is a customer concentration risk. Other features are worth testing before you list. Unresolved customer complaints and a weak review profile put the reputation in question. Seasonality matters if crews and trucks are sized for the busiest weeks and sit idle the rest of the year. Crew turnover, or a few lead movers the company cannot run without, is a key-person risk. A fleet that will need replacing all at once is a future cash demand, not only an asset. Ask each of these questions about your own company first.

Recasting earnings for a buyer

Ask your accountant whether earnings should be restated to show what the company would earn under a manager rather than under its present owner. That would mean identifying the owner’s pay, personal costs run through the company, one-time items, and the value of work the owner does by estimating or driving. BDC’s guide to selling a business notes that an accountant helps prepare the year-end and interim statements, projections and other documents that buyers typically ask to see in due diligence. Your accountant can show how the recast would look for your company, including the measure described in seller’s discretionary earnings.

Fleet and safety standing

A fleet can only be used within the rules that apply to it. In Ontario, the Commercial Vehicle Operator’s Registration (CVOR) program rates operators on safety performance, and the province says an Unsatisfactory rating causes operating privileges to be suspended or cancelled throughout Canada. Ontario also offers a public abstract that summarizes a carrier’s record for a two-year period. Transport Canada says commercial vehicle, driver and carrier rules across the country are based on the National Safety Code standards. Whether your trucks trigger registration depends on your province and how they are used, so confirm that with your provincial transportation ministry.

Why similar companies price differently

Compare two companies with the same revenue. In one, the owner still estimates and leads the biggest jobs; in the other, a manager and written procedures do. One holds its storage space on a long lease; the other has a short lease nearing expiry. One belongs to the Canadian Association of Movers, which describes itself as a trade association representing moving and storage companies; the other has no outside accreditation. Each difference is something a buyer can ask about. The association is not a regulator, so membership is one signal among several.

• List your referral sources and name the person who manages each relationship.
• Pull complaint, claim and review history so you know what a buyer will find.
• Separate owner pay and personal costs from operating costs before your accountant recasts earnings.
• Record fleet age, condition and the registrations each truck needs.
• Show how bookings and crew hours move through the year.