Profitable, Affordable Trucking and Logistics Co. - Sale Pending

We are pleased to offer a strong cash flowing, attractively priced, trucking, warehousing and logistics company. The business offers its impressive list of customers domestic transportation, international transportation, and warehousing services. The owners, approaching retirement age, look forward to transitioning their successful company to only the second owners in the 25-year history of this essential services business.

Located in a desirable suburb in SE Michigan, the business occupies an attractive, 22,000 square foot late model building with a favorable rent of less than 10% of revenues. The business is capable of warehousing 30,000 square feet of product in its partially climate-controlled storage space through use of pallet racking. In addition, there is an outside yard which offers overflow storage The entire facility and yard has 24x7 surveillance monitored by a professional alarm company.

The company employs eight loyal, well-paid, skilled, non-union employees, six of whom are drivers. Two others, including the operations manager with 17 years of tenure, oversee all aspects of the business. None of the employees are near retirement which is a critical buyer consideration in today’s tight labor market.

The company’s business model with respect to the acquisition of trucks and trailers is to lease, rather than buy them. This means capital expenditures are minimal, a departure from a traditional trucking company. Furthermore, maintenance and replacement of equipment is provided by the leasing company. This ensures all equipment is available and in proper working order in a timely fashion resulting in no delays to customer service.

Domestic transportation within a 150-mile radius from the company’s SE Michigan home base is serviced by the company’s trucks. Transportation for longer hauls and international freight is brokered by the company to third party providers who earn the assignments based on an excellent operating history, the availability of desired equipment, and of course very competitive rates.

The company stays involved as the point of contact to monitor the shipment and assist with any needed problem resolution. Transportation customers naturally use the company’s warehousing service when the need for temporary storage arises. Warehousing is generally done in conjunction with transportation needs; however, goods can be stored independently from shipping.

Ownership largely performs their duties on a remote basis, as most tasks do not require an on-site presence. This makes it practical to own and manage the business by employing a general manager who can address day to day activities that require on-site involvement.

The business has customers across several industries, with automotive representing the largest. The company wins transportation clients and keeps them for years and years based on fast, reliable customer service and prices lower than competitors’ at comparable service levels.

The business has recorded a three-year average annual EBITDA of nearly $300,000. A nominal 3.25x EBITDA multiple is applied to generate a $925,000 list price for the business. The sellers anticipate an asset sale in which cash and A/R are retained by the sellers who also will retire at closing all liabilities. The rolling stock fleet is comprised of as many as a half dozen trucks and trailers, some company owned, with the rest through a favorable third party lease.