FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News

Print

Houlihan Lokey Presents Equipment-as-a-Service Market Update

April 08, 2024, 07:05 AM
Filed Under: Industry News

Houlihan Lokey presented its latest Equipment-as-a-Service Market Update.

Here are some key takeaways from this edition of the report:

  • Despite a smaller count for EaaS transactions, disclosed volume was up significantly, indicating a willingness to spend on the part of buyers.
  • Private equity dry powder, which has been at record levels throughout the year, is showing signs of deployment as funds are more willing to pay premium valuations for worthwhile investments.
  • Despite the positive performance throughout the year, the risk of recession highlighted the importance of downside protection to many funds. Acquisitions by infrastructure funds have seen a surge brought on by elevated fundraising and are illustrated by Stonepeak’s $7.4 billion acquisition of Textainer.
  • Publicly traded EaaS companies have similarly taken the time to utilize cash on acquisitions, with Herc Rentals and H&E Equipment Services both making large acquisitions in the quarter and Sunbelt showing no signs of delaying bolt-on acquisitions as part of its “Sunbelt 3.0” initiative.
  • The equipment-as-a-service team covers a wide range of business models, including traditional equipment rental, specialty equipment rental, route-based equipment services, transportation equipment leasing, vehicle fleet management, equipment dealerships, asset pooling services, and infrastructure and municipal equipment services.






Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.