In what could be an indication of a new trend, a multi-location rental company in the northeastern United States has sold to an affiliate of a major construction equipment dealer. However, neither the buyer nor the seller has been willing to announce their identity. The Stansberry Firm (www.thestansberryfirm.com) represented the rental company.
"We had a number of interested parties in this business including strategic and financial buyers, as well as another equipment dealership group," said Gary Stansberry, president of The Stansberry Firm. "We have seen more and more equipment dealers become interested in the rent-to-rent strategy and in fact, we recently represented an equipment dealer as it evaluated an acquisition opportunity in the rental industry. These dealers recognize the growing importance of the rent-to-rent model as an integral component in achieving their desired market share and brand exposure within their trade territory. Often, the biggest challenge for these dealer groups is finding a rental company, especially one such as this with multiple locations, that operates solely within their assigned territory."
"Our ownership and management team decided that 2018 was the right time to sell the business," said a former owner of the acquired company. "We knew we had to stay focused on running our day-to-day operations and hired The Stansberry Firm to help find a buyer. The care and assistance we received was invaluable and ultimately led to a closing that would have not been possible without Gary Stansberry's help. "
"It's hard to say whether equipment dealers will become increasingly active in acquiring rental companies," Stansberry said. "In this case, we found the perfect union of buyer and seller, a vendor who had a long-time relationship with this particular rental company. With the capital and access to new equipment provided by the dealership group, they have the capability to expand and grow the business as well as showcase their primary brand."