Business Overview

This company, founded in the 1980’s, is an asset-based trucking company that specializes in same day local and Midwest regional shipments. They provide drayage services, intermodal transportation, and temperature-controlled trucking directly to their customer base. They own 100% of their trucks and equipment, as well as, they operate with 100% company employed W2 drivers to complete approximately 250 daily shipments. They work directly with their loyal customer base, instead of working with freight brokerages to receive their shipments.

The company is 100% owned by its sole founder, who has moved out of state and is an absentee owner working less than 2 hours per week for multiple years. There are 2 key employees in place on the experienced management team who run all day-to-day operations and sales of the business. The company is equipped with long-time, industry veteran drivers and a large facility, office space and truck yard within the Southern area of Chicago. They are also equipped with a sophisticated dispatch system designed to resolve any issues.

Financial

  • Asking Price: N/A
  • Cash Flow: $3,337,202
  • Gross Revenue: $13,600,214
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1982

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:154,000
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The business was started in 1982, making the business 40 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell operating businesses. However, the true reason vs the one they say to you may be 2 entirely different things. As an example, they may say "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a range of other factors. This is why it is really vital that you not depend completely on a vendor's word, however rather, use the seller's solution combined with your general due diligence. This will repaint a more sensible image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies finance loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that earnings margins are too small. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract new clients? Often times, businesses have repeat customers, which form the core of their day-to-day earnings. Specific aspects such as new competition growing up around the area, roadway building and construction, and also employee turnover can influence repeat clients and also negatively affect future revenues. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to build a returning client base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Just how might the regional mean family earnings impact future earnings potential?