Verify revenue, permits, equipment condition, and owner dependency before acquiring a food truck business with $300K–$2M in annual sales.
Find Food Truck Business Acquisition TargetsFood truck acquisitions require buyers to look beyond menu appeal and social media buzz. Revenue is often cash-heavy and event-driven, permits are jurisdiction-specific and not always transferable, and the truck itself may carry significant deferred maintenance. A disciplined due diligence process protects your investment.
Confirm that reported revenue is real, consistent, and not dependent on one-time events or unverifiable cash sales.
Cross-reference Square, Toast, or Clover reports against bank deposits for 24–36 months to confirm revenue consistency and identify seasonal patterns or cash-handling gaps.
Request three years of federal tax returns and CPA-reviewed profit and loss statements. Flag significant gaps between reported gross sales and taxable income.
Identify all recurring catering agreements, corporate accounts, and festival bookings. Quantify what percentage of annual revenue is contracted versus walk-up or event-dependent.
Verify that all licenses, permits, and agreements are current, compliant, and transferable to a new owner without significant delay or cost.
Confirm mobile food vendor permits, food handler certifications, and health department licenses are current and can transfer in your target jurisdiction. Timelines vary significantly by city or county.
Verify the commissary agreement is active, transferable, and meets local health department requirements. SBA lenders require a valid commissary contract for food truck financing approval.
Review all location-specific vending permits, private lot agreements, and event vendor contracts. Confirm which are transferable and identify any exclusive territorial rights at key locations.
Evaluate the truck, equipment, and brand to understand capital needs and the risk of revenue loss if the current owner exits.
Commission an independent inspection of the truck chassis, generator, refrigeration, and cooking equipment. Estimate remaining useful life and near-term capex needs before finalizing your offer price.
Assess whether the business runs on the founder's personal social media, cooking skills, or direct relationships. Request that brand accounts be business-owned and document follower and review metrics.
Confirm whether trained employees will stay post-acquisition and whether recipes, supplier contacts, and operating procedures are documented in a transferable operations manual.
Verify the Food Truck Business acquisition qualifies for SBA financing, the purchase price is supportable by the verified cash flow, and the deal structure protects the buyer's downside.
Confirm the Food Truck Business meets SBA 7(a) eligibility requirements: the business is for-profit, U.S.-based, within SBA size standards, and the buyer meets personal financial requirements. Some industries have specific SBA restrictions — verify before LOI.
Model verified normalized EBITDA against projected SBA loan payments at current rates. A $1M SBA 7(a) loan at 10.5% over 10 years costs approximately $13,000/month. The Food Truck Business must generate at least 1.25x debt service coverage after a market-rate manager salary to pass underwriting.
Confirm the seller note is properly subordinated to the SBA loan and goes on 24-month standby as required by SBA rules. If an earnout is included, define exact measurement metrics, time period, and dispute resolution process before signing the purchase agreement.
Before signing a Letter of Intent, request these documents from the seller. Missing or incomplete items are a red flag — not a reason to proceed without them.
Yes. SBA 7(a) loans can finance the truck, equipment, and goodwill. Lenders require a valid commissary agreement, strong EBITDA documentation, and typically 10–20% buyer equity injection at closing.
Request POS reports from Square or Toast, cross-referenced against bank deposits and tax returns for 24–36 months. Unexplained gaps between sales reports and deposits are a serious red flag.
Permits rarely transfer automatically. Most jurisdictions require a new application under the buyer's name. Start the transfer process early, as timelines range from two weeks to several months depending on the city.
Most food truck businesses sell at 1.5x–3x EBITDA. Trucks with documented catering contracts, transferable permits, and low owner dependency command higher multiples; cash-heavy or single-operator trucks trend lower.
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