Business Overview

Trucking company specializing in refrigerated product transportation. Over 30 drivers are employed by this well-established company with drivers in all 48 states with a focus in the Midwest. This company could be run as it exists today or and add on to a present operation. Several loyal customers as this company enjoys an excellent reputation for partnering with in the refrigerated product transportation business.

Financial

  • Asking Price: $1,300,000
  • Cash Flow: $380,000
  • Gross Revenue: $6,500,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2008

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:35
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The venture was started in 2008, making the business 14 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell operating businesses. Nonetheless, the real factor and the one they tell you may be 2 entirely different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in incomes, or a variety of other factors. This is why it is very important that you not rely absolutely on a vendor's word, but rather, utilize the seller's answer combined with your overall due diligence. This will repaint a much more sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover things like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that revenue margins are too thin. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be satisfied or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in new consumers? Many times, companies have repeat consumers, which create the core of their day-to-day earnings. Certain factors such as brand-new competitors sprouting up around the location, roadway building, as well as employee turnover can impact repeat consumers as well as adversely affect future incomes. One crucial thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the higher the opportunity to develop a returning customer base. A last thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the regional mean family earnings influence future revenue prospects?