Mountain West Driving School Sold for $279K, LOI in 58 Days
Rachel Horner
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2 min read
About the Business
Industry: Education – Driver Training
Location: Mountain West
Size: $250K–$500K in annual revenue, $100K–$150K in cash flow
Sale price: $278,700
Listing to signed term sheet: 58 days
Signed term sheet to purchase agreement: 59 days
The Challenge: Valuing a Book of Prepaid Lessons
The owner had run the school for nearly three decades and was ready to retire. Much of its value sat in lessons students had already paid for, which a buyer would have to deliver after closing.
58 Days to a Signed Term Sheet: Closing a Wide Valuation Gap
What happened at every stage
Valuation: Baton reconciled the school's trailing-12-month financials and priced it at about 2.9 times cash flow. Every record a buyer would need went into a data room before launch.
Buyer Outreach: Baton's listing drew 12 buyer leads, including a multi-location driving-school operator. The Baton advisor qualified the buyer and set up the meeting with the owner.
Offer Selection and Negotiation Support: The buyer opened far below the owners' expectations and proposed working backward from the cash they needed at closing. Baton shuttled between both sides until they signed a $278,700 term sheet in about three weeks.
Diligence and Closing Support: When the owner corrected the prepaid-lesson balance during diligence, the payment split was revised and the total held. The purchase agreement was signed 59 days after the term sheet.
The Results
The buyer operates driving schools in several states and added the school to its network. Through Baton's process, the business:
Sold for $278,700 to a multi-location operator
Moved $167,430 in prepaid student lessons to the buyer, along with the fleet, name and records
Paid the owners $61,270 in cash and a $50,000 seller note
What's next for the owner?
The owner stayed on site for three weeks after closing, then supported the buyer part-time for six months through the license transfer and into retirement.
Advice and Lessons for Future Sellers
Know what you owe customers. Prepaid services count against the price, so an accurate balance keeps the deal moving.
Have your records ready before launch. A complete data room let an experienced buyer move from first call to term sheet in under two months.
Plan for licensing. Regulated businesses can take months to transfer fully after the purchase agreement is signed.