Dear community,

I am undertaking DD of a regional towing/haulage business ($6M turnover, $2M EBITDA, $2M machinery, $6.45M EV) and have a couple of concerns regarding the level of sustainable earnings over the next 5-10 years. For context, I see this as a cash cow investment (a simple to run, boring'ish' business) where limited organic growth is available and growth opportunities (in time) will be via acquisition. The first couple of years post transaction will be focussed on learning the business###-###-#### months) and paying down acquisition debt.

While I have read the IBIS reports and understand that demand for these services is somewhat inelastic, I don't have a clear view on the revenue impact of more EV cars in the system and the corresponding reduction in theft and abandonment of vehicles. There is some offset by more vehicles on the road, however, I am unclear on the medium-term ramifications of the current business model. Has anyone looked into this? Maybe this is a greater issue over the medium to long term but I am looking for opportunities where we are buying and holding long-term.

Further, I would be keen to understand whether anyone had any views on ongoing machinery repair costs (i.e. 10% of value of fleet as a rule of thumb?) and ongoing capital costs (again, while this is lumpy, wondering if 10% of value of fleet is reasonable, 20 vehicles) in this type of business?

I'd love to connect with anyone involved in this space.

Thanks so much in advance for your consideration, I love being part of this group of entrepreneurs and investors!