Capex Diligence

Our client, a school bus fleet operator comprising 19 companies, manages a fleet of over 1,000 assets, including Type-A, Type-C, and Type-III buses, as well as motorcoaches. With an annual revenue of $90 million, they required a comprehensive CAPEX analysis and fleet assessment to support a financing transaction. The project involved detailed modeling of historical and projected capital expenditures, fleet sizing, and maintenance needs while identifying monetization opportunities. This analysis was conducted in collaboration with our Performance Solutions team, which performed a physical asset assessment, and our Valuation team, which carried out an asset appraisal. Together, these efforts ensured accurate asset valuation and strategic capital allocation.

Our team developed a VIN-level financial forecasting model through extensive collaboration with the Valuation Team and Performance Solutions Team. Together, we assessed fleet age, mileage concentration, and net book value (NBV) distribution, enabling the client to categorize vehicles into core fleet, cushion fleet, buy-hold-sell status, and retirement eligibility.

This integrated approach provided a comprehensive view of the fleet, key performance indicators (KPIs), and a dynamic model for optimizing fleet management. By leveraging insights from each team, the client gained a strategic framework for managing CAPEX, tracking financial and operational KPIs, and making data-driven decisions to sustain efficiency and optimize asset allocation.

Developing a Dynamic Model to Manage Assets and Projecting CAPEX While Unlocking $13.5M in Monetization Opportunities in 5 years.

• Fleet and CAPEX sizing
• Inventory and asset management
• KPI analysis based on P&L
• CAPEX Rollforward
• Financial metrics and asset valuation
• Monetization opportunities