How to Buy a Moving Company (SBA Acquisition Guide)

Why Moving Companies Work for SBA Acquisitions

The economics are straightforward. At a 2.8x average multiple on $350K in cash flow, most moving company deals land squarely in the 3x to 5x SBA sweet spot. The debt service math works.

Moving companies also carry real barriers to entry. A fleet of 10 trucks, DOT operating authority, experienced crews, and a customer list built over years is not something a competitor stands up overnight. That defensibility is what you are buying.

The business model itself is simple. Residential moves generate volume. Commercial and corporate relocation contracts generate recurring revenue. Storage operations, when attached, add a nearly passive revenue stream on top of the moving operations.

Texas leads all states with 37 active listings at a median of $1.075M. Pennsylvania listings run higher at $1.2M median, reflecting denser metro markets. Illinois comes in cheapest at a $550K median, with Michigan and Massachusetts clustered around $800K to $837K.

Deal Economics and What the Numbers Actually Mean

Take the median deal and run the math.

A $1M moving company doing $350K in cash flow at 2.8x trades well. Structure it as $850K SBA loan at a 10-year term and approximately 10.5% interest, plus $100K seller note on full standby at 0%, plus $50K buyer cash. Annual debt service on the SBA portion runs roughly $138K. At $350K cash flow, that is a 2.53x DSCR. Comfortable.

The seller note is on full standby, meaning no payments during the SBA loan term. Regalis Capital achieves full standby seller note terms on more than 90% of completed deals.

One thing to watch: moving company cash flow figures are often presented as SDE. SDE includes the owner's salary and other add-backs that a new owner cannot always replicate at the same rate. Discount SDE by 15% to 30% before building your debt service model. At $350K SDE discounted 20%, you are working with $280K in real cash flow. The deal still works at 2.0x DSCR, but the cushion shrinks.

These are rough estimates based on market data. Actual terms depend on individual qualification and lender.

What to Look for in a Moving Company Acquisition

The truck fleet is the asset. Get an independent appraisal on every vehicle. Trucks with 300,000 or more miles are a liability, not an asset. Deferred maintenance is a red flag that transfers directly to your P&L in year one.

DOT compliance is non-negotiable. Pull the carrier's Safety Measurement System (SMS) scores from the FMCSA portal before you go under LOI. A carrier with poor BASIC scores or a conditional safety rating is carrying regulatory risk that can cost you your operating authority.

Revenue concentration matters enormously. A moving company doing $2M in revenue where $800K of it comes from one corporate relocation account is a riskier buy than the numbers suggest. Ask for a customer-by-customer revenue breakdown. A single account representing more than 25% to 30% of revenue needs to be addressed in the deal structure, either through an earnout tied to retention or a meaningful purchase price reduction.

Seasonality is real. Most moving companies do 60% or more of their annual volume between May and September. Verify that slow-season cash flow still covers debt service. A business that cash flows well in summer but bleeds in winter is a problem if your lender underwrites annual averages.

Look for companies with storage operations or B2B commercial accounts. Those revenue streams flatten the seasonality curve and make the business easier to finance.

Local Market Considerations by Region

Texas dominates deal volume for a reason. Population inflows from California and the Northeast have created sustained residential move demand across Dallas, Houston, Austin, and San Antonio. At 37 listings and a $1.075M median, Texas offers the deepest buyer market in the country for this category.

The Southeast corridor, covering Georgia, Virginia, North Carolina, and Tennessee, all clusters around $900K median with solid listing counts. These markets are benefiting from the same population migration patterns.

Pennsylvania at $1.2M median reflects Philadelphia and Pittsburgh's denser commercial moving market. Higher prices but also more corporate account revenue, which stabilizes cash flow.

Illinois at $550K median is the outlier. Chicago-area movers face a different dynamic: the state has been a net exporter of residents for years. That does not make the businesses bad acquisitions, but it does mean growth assumptions need scrutiny.

Common Pitfalls in Moving Company Acquisitions

Equipment condition is the most common deal-breaker we see. A fleet that looks fine on paper falls apart once a mechanic inspects it. Budget for $15K to $30K per truck in immediate post-close maintenance even on deals where the seller represents equipment as "well-maintained."

Key man risk runs high in owner-operated moving companies. The owner often holds the key customer relationships, handles corporate account renewals personally, and manages crew leads. A 12 to 24 month transition period with the seller is common and worth negotiating hard for.

Insurance costs bite harder than buyers expect. Commercial auto, cargo, and liability coverage on a 10-truck fleet can run $80K to $120K annually. Verify the actual insurance cost, not a normalized add-back that the broker has inflated for SDE purposes.

Crew dependency is the last piece. Experienced foremen who know how to run a move without supervision are worth more than the trucks. Ask about crew tenure and whether key foremen have been offered any retention incentives post-close.

How to Finance a Moving Company with SBA 7(a)

Moving companies qualify well for SBA 7(a) financing because they have hard assets, specifically the truck fleet, that provide collateral. SBA lenders are comfortable with this category.

The standard structure: 85% SBA loan / 10% seller note on full standby at 0% interest acting as equity / 5% buyer cash. On a $1M deal, that is $850K SBA loan, $100K seller note, $50K out of pocket.

Current SBA 7(a) rates run approximately 10% to 11% based on WSJ Prime plus the lender's spread. At a 10-year term, that pencils to roughly $11K to $13K per month in debt service on an $850K loan.

Equipment age matters to lenders. A fleet of trucks with remaining useful life provides real collateral. A fleet of beaters with 500K miles each gives a lender nothing to foreclose against, and they will price that risk into the deal or decline.

Get a signed intent to assign from any significant commercial accounts as part of due diligence. Lenders want to see that revenue is transferable.

How to Buy a Moving Company: Step-by-Step

Step 1: Define your target parameters. Decide on geography, fleet size, and revenue mix before you start looking. A 5-truck residential mover and a 20-truck commercial operation require different operating expertise and carry different financing profiles. Know which one you are buying.

Step 2: Source and screen deals. Review listings on BizBuySell, reach out to brokers who specialize in transportation and logistics, and consider off-market outreach to companies in your target market. Pull FMCSA records early. Screen out carriers with conditional or unsatisfactory safety ratings before wasting time on financials.

Step 3: Request and analyze the financials. Get three years of tax returns, not just P&L statements. Recast the financials to normalize owner compensation, but be conservative. Discount SDE by 15% to 30% to get to a realistic buyer cash flow number. Model debt service at current SBA rates.

Step 4: Submit a Letter of Intent (LOI). Once a deal pencils, go under LOI before starting full due diligence. The LOI locks in price, structure, and exclusivity. Negotiate the seller note terms at this stage, specifically full standby at 0% interest.

Step 5: Conduct due diligence. Inspect every truck with an independent mechanic. Pull all DOT and FMCSA compliance records. Review customer contracts for transferability and concentration. Verify insurance costs with the actual carrier, not the seller's representations. Confirm crew tenure and identify key foremen.

Step 6: Secure SBA financing. Submit your SBA package with three years of business tax returns, a business plan, personal financial statements, and the purchase agreement. Equipment appraisals and a business valuation will be required. Pre-qualification with an experienced SBA lender shortens this step considerably.

Step 7: Close and transition. Negotiate a transition period of 12 to 24 months with the seller. Have the seller formally introduce you to all commercial accounts. Retain key crew leads with performance bonuses tied to their first-year stay. Take the first 90 days to learn operations before making any structural changes.

Frequently Asked Questions

How much does it cost to buy a moving company?

The national median asking price is $1,000,000, though deals range from under $100K for small single-truck operations to $16M for large commercial movers. Most SBA-financeable deals fall between $500K and $5M. Cash flow at the median runs approximately $350,000, implying a 2.8x purchase price multiple.

Can I buy a moving company with SBA financing if I have no trucking experience?

SBA lenders prefer buyers with relevant industry experience but will often approve deals where the buyer has transferable management experience and the seller stays on for a meaningful transition period. Hiring an experienced operations manager as part of the deal structure can also satisfy lender concerns about operator qualifications.

What is the typical DSCR on a moving company acquisition?

At the median deal of $1M asking price and $350K in cash flow, a standard SBA structure produces a DSCR of roughly 2.0x to 2.5x depending on the discount applied to SDE. Regalis Capital targets a 2x DSCR as the baseline and will not recommend a deal below 1.5x without meaningful synergies or a discounted purchase price.

What due diligence items are specific to moving companies?

Beyond standard financial due diligence, buyers must pull FMCSA Safety Measurement System scores, verify DOT operating authority is in good standing, get independent mechanical inspections on all fleet vehicles, confirm commercial accounts are contractually assignable, and verify actual insurance costs with the carrier directly. These items can materially change deal economics.

How long does it take to close on a moving company acquisition?

From signed LOI to close, most SBA-financed moving company acquisitions take 60 to 90 days. Timeline drivers include lender processing speed, equipment appraisal turnaround, and how quickly the seller provides complete financial documentation. Having a pre-qualified SBA lender before going under LOI can cut two to three weeks off the process.

Ready to Acquire a Moving Company?

Moving companies at a 2.8x median multiple with real fleet assets and transferable customer accounts are exactly the kind of deal that SBA financing was built for. The economics work. The structure is straightforward. The due diligence is knowable.

Regalis Capital's deal team reviews 120 to 150 deals per week across industries including transportation and logistics. If you are evaluating a moving company acquisition, we can help you run the numbers, structure the deal, and get to close.

Start with a free deal assessment at Regalis Capital