What a buyer weighs in a rental house
- Utilization
- How often each category of gear is out on rent, and what it earns against its cost.
- Fleet age
- When major items were bought, what needs replacing soon and how fast it loses value.
- Client base
- Studios, series, features, commercials and music videos, and how much the biggest client carries.
- Staff
- Prep techs, account reps and drivers, and who the production coordinators actually call.
- Loss and damage
- Insurance, damage waivers and how you recover lost or broken gear.
Equipment and Earnings Both Count
A rental house has real hard assets, which reassures buyers and lenders. But a warehouse full of gear is only worth its earnings if it keeps going out the door.
Buyers price the company on cash flow, then look at the fleet to see what it will cost to keep that cash flow coming.
Gear ages fast. If the next owner faces a big replacement cycle in year one, expect that to come off the price. A fleet list with purchase dates, cost and rental income by item saves a lot of back and forth.
Production Comes in Waves
Film and TV work moves with studio budgets, labor contracts and changes to incentives. A buyer will want several years of revenue so they can see how you held up when work slowed, and how fast you came back.
A mix of features, series, commercials and live events smooths the curve. One long running series that rents most of your gear is great while it lasts, and a concentration risk at sale time.
Relationships Matter
Coordinators and camera teams rent from people they trust. If those calls come to you, plan a longer transition. Account reps who own client relationships, with agreements in place, make the company easier to buy.
Books That Match the Gear
Rental houses often buy gear through the company and depreciate it fast, which keeps taxes low but makes profit look thin. A buyer will recast for that, adding back depreciation and looking at what you really spend each year to keep the fleet current.
Keep rental income, sales of used gear and insurance payouts on separate lines. Selling off old cameras is not operating income, and lumping it in will be caught.
Who Buys Rental Houses
National rental groups buy to add a Southeast location. Studio facilities add rental services. Operators from inside the industry buy with SBA loans, which lenders like because the gear backs part of the loan. See selling to an SBA financed buyer.
Personal Property Returns Matter Here
A big equipment fleet means a big county business personal property return. In the year you sell, who owns the gear on January 1 matters. Read the Fulton County personal property guide, and our valuation page for how earnings are recast.
To learn what your company could sell for, send the form or call (404) 555-0139.