Hello all,

I am starting to evaluate a Nashville-based event rental business. I have not received financials yet, but from conversations with the owner I have learned quite a bit.

one item that concerns me is the heavy CAPEX spending. The owner recently upgraded his equipment and took on several million in debt to pay for it. Additionally, he’s told me that to hit a strong growth trajectory he expects a few more million in CAPEX in the next couple of years.

i don’t think this is a deal killer, yet, and wondering if anyone has experience investing/operating with a capex heavy company. Bonus if you’ve worked in event rentals.

Appreciate any advice/insight. Please DM!