I like the equipment rental space in general. However, the heavy equipment space (like all equipment) requires deep knowledge of the equipment, particularly with maintenance schedules. Not having a grasp of maintenance and repair needs (aside from what the seller tells you) can eat up your cash very fast. Plan for the worst (and then some) and be very conservative with leverage, given the cyclicality others have mentioned as well. You also want to leave room to be able to finance your asset growth. In my view, it’s not something to put only 10% equity into (but I also feel that way about almost any business). Whether it’s a good fit for searchers really comes down to one’s experience in the space.

Im going to come at it from a more general angle. There is a reason the traditional search fund model is asset light, among other factors like being cash flow positive. Any deviation from it necessarily requires a reason. Either personal expertise, asymmetric knowledge, expected tailwinds (regulation, policy, etc.), flexible investors, and so on. The list is non-exhaustive, but the qn is the same. Are you able to mitigate an increase in risk that your deviation brings. If not, then something else has to give