I think that traditional valuation formula fall short here. For the type of company being described, it is likely that the labor of the current owner is a significant portion of the value of the company. In other words, a significant portion of the net earnings are a result of the labor input of the owner. The company is worth much less with him around, unless there is an existing management team that is going to stay when it sells. it is likely the worth of the company is not a lot more than the worth of the inventory. Certainly more, (even a lot more), but I doubt it is worth multiples of the worth of the inventory. OTOH, I know absolutely nothing about cartage companies, and could be completely wrong.