Business Overview

There is over $2.9M in included assets included with this 4-location railroad terminal operation! Serving the Mid-Atlantic to Northeast region of the U.S. for over 20 years, this family of companies offers railroad terminal operation for inbound & outbound freight clients, clerical & inspection work for inbound & outbound rail freight, equipment maintenance & repair, and transloading of commodities such as frac sand, swamp mats, propane, residual waste, hazmat materials, and agricultural products. The diverse customer base consists of transportation providers, oil & gas companies, agriculture industry clients, PennDOT, the energy sector, and plastics & lumber clients. Everyone on the team of 36 highly experienced staff is cross-trained and can work at each separate entity within this company. The owner is retired and has an adult daughter who will stay on for 5+ years and continue as General Manager.

Corporate headquarters are in Scranton; this entity supports the accounting/bookkeeping, insurance needs, and HR. There is an intermodal terminal operations company also located in Pennsylvania, and a bulk rail facility in New York that is a short line railroad and is project-oriented, handling everything from mats for pipelines, re-bar for road construction, and utility poles for the power industry. The fourth entity is a rail facility in Pennsylvania with a certified truck scale and multiple conveyers.

The team is comprised of 1 Operations Manager/Communications Director, 1 VP of Business Development, 1 Controller, 1 Accounting/HR, 1 Safety Officer/Project Oversight, plus a number of day managers, night managers, mechanics, transload operators, crane operators, truck drivers, and clerical staff. Assets include 6 sand trans loaders/conveyers, 4 hostler trucks, 2 overhead gantry cranes, a vacuum lift, and a variety of heavy lifting equipment & heavy construction pieces.

Substantial growth is inevitable for this family of companies. Expanding their service area further south, adding another fully functional terminal, increasing commodities, and looking further into increasing residual waste removal services would be tremendous and diversified.

Financial

  • Asking Price: $6,500,000
  • Cash Flow: $1,465,708
  • Gross Revenue: $4,192,564
  • EBITDA: N/A
  • FF&E: $1,106,414
  • Inventory: $59,873
  • Inventory Included: Yes
  • Established: 1998

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:36
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Location: Pennsylvania & New York: 4 Locations Service Area: Mid-Atlantic to Northeast U.S.

Is Support & Training Included:

1 year if desired; has adult daughter who will stay on 5+ years and continue as GM

Purpose For Selling:

Retirement

Opportunities and Growth:

Growth Opportunities: Expand service area, add another terminal, increase commodities, look further into increasing residual waste removal services

Additional Info

The business was started in 1998, making the business 24 years old.
The deal will include inventory valued at $59,873, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell companies. However, the genuine reason and the one they tell you might be 2 entirely different things. As an example, they might claim "I have way too many other obligations" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be justifications to try to hide the reality of transforming demographics, increased competitors, recent decrease in revenues, or a range of various other factors. This is why it is extremely essential that you not rely completely on a vendor's word, yet rather, make use of the seller's answer combined with your overall due diligence. This will paint a much more practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering things like supplies, payroll, accounts payable, etc. Remember that occasionally this can suggest that earnings margins are too tight. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in new clients? Often times, businesses have repeat clients, which develop the core of their everyday earnings. Particular variables such as new competition sprouting up around the area, roadway building and construction, and also personnel turnover can impact repeat consumers as well as adversely affect future incomes. One important thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the higher the chance to build a returning consumer base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the local average house income impact future revenue potential?