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Buying a Carnival Rental Business with $1.3M Profit

20 snips
Apr 22, 2025
Dive into the fascinating world of carnival rentals, where a $7 million bouncy house business boasts $1.3 million in annual profit. Discover the extensive inventory of inflatables and rides, from Ferris wheels to zip lines. The hosts debate the valuation of such a capital-intensive venture and the potential for growth into traveling pop-up models. They also discuss how self-represented sellers may lose buyer confidence and explore innovative business funding options. Is this the future of family entertainment or just inflatable insanity?
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INSIGHT

Stable Profit from Efficient Operations

  • Rentable carnival businesses with strong operational efficiency can generate steady profit.
  • Good reputation and repeat B2B clients reduce customer acquisition friction.
INSIGHT

Asset-Heavy Valuation Complexity

  • The carnival rental business is asset-heavy with $3M in assets including inflatables and rides.
  • Its $1.3M net income justifies a valuation approach combining cash flow multiples and asset value.
INSIGHT

Pre-Sale Big Asset Purchases

  • The owners just bought a new $500,000 Ferris wheel to grow the business.
  • Investing in new assets right before selling may not translate to full seller value.
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