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$37M for Jet Skis?! Inside a Lake Powell Rental Empire

17 snips
Mar 20, 2026
Guest
Josh Tonneson
Josh Tonneson, an accounting and QOE expert who advises on valuation and tax for asset-heavy deals. He walks through replacement-cost thinking, fleet depreciation, and how utilization drives returns. The conversation covers pricing, maintenance headaches, financing options like sale-leaseback, and why marina access and lead channels make or break this massive rental business.
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INSIGHT

Massive Asset Bundle Drives The $36.9M Asking Price

  • The Lake Powell listing bundles heavy assets including two commercial buildings, 7 Mastercraft boats, 32 jet skis, 60 ATVs/UTVs and 350 RV storage slots.
  • The $36.9M asking price is driven by asset concentration and real estate, not disclosed revenue or EBITDA, making valuation opaque.
ADVICE

Lock Marina Access Contracts Before Closing

  • Do secure marina access contracts and make them survive sale because dock access is existential for the rental operations.
  • Insist on contract assignments or long-term agreements during diligence to avoid being cut off from walk-up leads.
ADVICE

Calculate Asset Yield Before Bidding

  • Do calculate return on assets up front because this is an asset-heavy rental business tied to utilization and replacement cycles.
  • Model required capital tied up in boats/jet skis and compare asset yield to alternative investments (e.g., S&P) before bidding.
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