Listing ID: 70109
24 years in business, an Alabama based company that has been proudly servicing the Transportation Industry for 18 years. As of Nov 1st 2021 running a 20% increase over last year. Our services provide Customers with outstanding performance, and dedication to their transportation needs. It is a Woman owned Small Business with great potential to excel in future growth. In today’s market Transportation needs are only going to be in higher demand in the years to come. Currently the company is running 7 Units that are less than 4 years old. Consisting of 3-2018 Kenworth T-680’s, and 4-2019 Kenworth T-680’s. The Trailer Fleet consists of 11, 53ft Dry Vans that are all under 10 years old (7 of which are less than 2 years old).
The owner is looking to retire in the future, after 35 years of service to the industry. She is willing to assist the new owners with training, and transitions as needed. Current Drivers will remain employed, as well as office personnel if so desired.
- Asking Price: $2,900,000
- Cash Flow: $488,517
- Gross Revenue: $2,100,000
- EBITDA: $687,270
- FF&E: $1,820,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The company was started in 1997, making the business 25 years old.
The business has 4 employees and is situated in a building with estimated square footage of 2,000 sq ft.
The property is leased by the business for $600 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. Nonetheless, the true reason and the one they say to you may be 2 entirely different things. As an example, they may state "I have too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be reasons to attempt to conceal the reality of altering demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is very crucial that you not count absolutely on a vendor's word, but rather, use the seller's response combined with your overall due diligence. This will repaint a much more sensible image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering items such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that revenue margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in new clients? Often times, companies have repeat clients, which form the core of their everyday profits. Particular aspects such as brand-new competition growing up around the area, road construction, and employee turnover can affect repeat consumers and negatively impact future profits. One important thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the better the chance to develop a returning customer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Just how might the neighborhood median family earnings influence future revenue prospects?