The company is a trucking business, started in 2013, that specializes in mid and final mile delivery for large distribution and logistics customers. The business is a third-party logistics provider for several large companies, whose services cover a niche market and are focused primarily on the Southern California region. However, with more capacity and capital, the operations can be easily scaled up to cover more geographical areas and markets or relocated anywhere within the U.S.
From the outset, the company drew on the founder’s extensive experience in the shipping and logistics industry. The processes put in place by the seller, allow for daily operations to be run by experienced and competent managers, who are well-equipped and ready to ensure a smooth transition of ownership should the new owner decide to keep the current team on. Additionally, this creates the opportunity for the owner to put in only two to three hours daily, if desired.
Some of the company’s primary clients include Amazon Logistics, in which they deliver mainly food items to various warehouse locations under the “Amazon Fresh” program, and Schneider National Carriers for whom the company covers six routes, including San Diego, Los Angeles, Palm Springs, Bakersfield, and the Tranquila Area. The company’s long term relationship with its primary clients have additional capacity and can be easily leveraged into additional routes. Furthermore, all of the company’s client accounts are dedicated and paid bi-weekly, ensuring stable and predictable cash flows, which can be critical in strategic and financial planning.
The firm was minimally impacted by COVID-19 because of their ability to track the start of a slow down at the docks, as early as January 2020, and pivot the business accordingly, while mitigating a large impact. April 2020 numbers are already showing a rebound and even growth. To that end, the exponential improvement in its financial performance over the three year period from 2017 to 2019 is a clear reflection of the company’s solid financial standing.
Additionally, the company has access to a large pool of contacts and potential opportunities, which are currently beyond the firm’s capacity and resources. For instance, the company currently outsources approximately $30,000 per month to its competitors, a tremendous immediate growth opportunity for a new buyer with adequate resources
- Well-established business that specializes in mid and final mile delivery for large customers.
- Successfully owned and managed by an industry veteran with over 22 years of experience within the Logistics and Shipping Industry. Processes put in place to make the owner virtually absentee.
- Five-year renewable contracts with major clients such as Amazon and Schneider National Carriers.
- Loyal and experienced driver network managed by a highly competent and proactive management team.
- Steady revenue stream and predictable cash flows thanks to the Company’s dedicated accounts that are paid bi-weekly.
- Revenue security due to weak competitive pressure within the company’s niche market segment.
- Processes and strategies in place that are easy to maintain and ensure future success with very little owner involvement.
- Potential to immediately increase revenue streams by approximately $30,000 per month (currently outsourced to sub-contractors) by increasing firm capacity.
- The low-cost profile allows the possibility of tremendous expansion with very little cost, if a buyer wishes to take on additional routes.
- Effective use of independent contractors resulting in reduced costs and legal responsibilities.
- Exponential increase in income, cash flow, and profitability between 2017 to 2019. Total revenue has increased from $663,221.00 to reach $1,740,030.00 in 2019.
- Having leased trucks gave the firm flexibility to switch to all refrigerated trucks to take advantage of shift in contract opportunities due to COVID-19
Given the company’s operations are run out of a home office, the business can be easily relocated anywhere within the United States. To park its vehicles, the company pays $1200 a month for a parking yard, which is strategically located within a 5-mile radius of most of its customers. The yard is large enough to absorb any additional capacity at a fee of $125 per truck.
The company’s overexposure to a single client is limited. If a client is lost, they can simply monetize one of the other contracts more to offset any losses. Finally, based on existing client relationships, access to load boards for occasional one-time jobs, and the company’s autonomy in contract selection, the firm has the potential for exponential growth through capacity building.
Additionally, the firm currently has no bad debt on its books, as liabilities are repaid relatively quickly. There are no substantial mergers and acquisitions that the current owner believes could negatively impact the company’s current standing.
The company is for sale for $2,500,000
California or Remote
|Years in Business||7 Years – Since 2013||Ownership||100%|
|Employees||22 employees in total, including:
-(3) full-time managers
-(19) 1099 drivers
|Facilities||No office space is owned or leased.
The Company pays $1200 a month for a parking yard strategically located within a 5-mile radius of most of its customers.
|Hours||Normal business hours.||Reason for Sale||Pursuing other interests.|
|Equipment||Most of the equipment is leased (a detailed table is provided on slide 14).|