Highly Profitable Local Freight Trucking Company

Price: $2,795,000

Location: Livingston County, Michigan

Industry: Local Freight Trucking

Listing ID: CK250117JK

Status: Sold

Listing Description

This business opportunity is characterized by the two founders and current owners who began the enterprise from scratch. The combination of hard work, hope and a belief in their own abilities have all contributed to the creation of a very successful trucking operation that started with just one truck. Their hard work, along with a diligent commitment to the overall integrity of the business, has enabled them to attract a skilled and solid long term team of people who know how to be successful. The company has a 19-year history of growth, profitability and a envy and admire. Despite the ups and downs of the economy or the common challenges that have faced the transport industry, this enterprise has continued to grow while maintaining an excellent workforce. Today, 17 full-time drivers are running routes using 24 tractors/trucks and 33 trailers, with the ability to expand utilization. This company is strategically positioned for a rapid pace of continued growth.

Company has over the years earned the business and respect of firms and industries throughout their service area. Their commitment on-time and quality of delivery has shown their customer how good transportation service can be done.

The following are the services that the Company offers their customers:

  • Expedited Service, Same Day, Next Day Deliveries with a Sense of Urgency
  • 48’ and 53’ Trailers
  • Tractor Trailers, Straight Trucks, Cargo Van and Flatbeds Service
  • Driver or Driver & Truck at competitive hourly rates
  • Cross Docking and Warehousing Services with heated storage
  • All Hazardous Materials (Hazmat) Endorsed Drivers

Benefits using the Company

  • Freedom from all co-employer responsibilities
  • No obligation to hire driver, purchase or lease any equipment
  • Adjustment of trucking fleet size to meet seasonal needs
  • All trucks professionally maintained
  • Fully Insured, Including cargo
  • Professional truck drivers with excellent driving records.
    • D.O.T. Certified
    • Current CDL’s meeting government requirements
  • An unquestionable commitment to safety
  • Security measures to ensure high-valued shipments arrive safe
  • Member of the Michigan Trucking Association

Listing Details

Total Sales: $3,213,633

EBITDA: $1,055,898

Accounts Receivable: $300,000

FFE: $1,314,691 (Included in Price)

Reason For Sale:

After 19 years of hard work to build a very profitable company, the owners have decided to offer their company for acquisition to create more time to be spent with family and friends.

Training & Support:

The owners are willing to assist the acquirer in learning the business for a reasonable period of time.

Operation

Year Established: 1998

Days & Hours of Operation: Monday - Friday; 5:00am - 6:00pm

Owner Hours Per Week: Monday - Fridayl 5:00am - 1:00pm

Non-Owner Payroll: $1,210,804

Employees: 17

Managers: 1

Location

Lease Option: Yes

Monthly Rent: 1800

Type of Location: Commercial

Relocatable?: Yes

Facilities Information:

Company operates a terminal, located a Southeastern Michigan. The terminal is currently on a three-year lease, expiring September 30, 2018, with options of renewal. The monthly rental is based upon usage and currently is running about $1,800.00 per month. The terminal is sufficient to meet their current operations and could easily be used if the business were to double their shipment volumes.

The property includes (measurements are approximate):

2 acres to park all the tractors, trucks and trailers - $800.00/month
1,000 square foot Quonset hut for the mechanics garage - $500.00/month
750 square foot warehouse and docks - $150.00/month
576 square foot office suite 105 - $350.00/month
Terminal location is ideal for running a regional freight company, with the perfect blend of equipment and people at the disposal of their customers. This center manages the regional trucking operations to ensure that key decisions and accountability remain a top company focus.

Future highlight of this location is that Amazon is building a million square foot distribution center and warehouse spanning 116 acres down the street from their terminal facility. This new facility is expected to employ 1,000 people, which might assist in attracting additional drivers.

Summary

Competition:

What makes a trucking firm such as this company competitive in trucking is a formula that says, “Do the things you know you can do and do them well”. The company is not going to go cross country to make a delivery, but it is going to perform regional delivers on time and safely. It has done both of these practices thousands of times for hundreds of customers consistently for 19 years. It is the “Go To” trucking firm for safe and reliable deliveries.

It has a tight management style that continues to deliver great financial results.

Potential Growth:

All of the equipment is in excellent condition making it possible to increase business by utilizing existing equipment after 6 pm; in short, the trucking operations cease operations about that same time five days a week at about 6 pm. There is an obvious opportunity to increase revenues with an afternoon shift and/or weekend runs that would drive more revenue to the bottom line and significantly increase overall margins for the business in general. The even better news is that the demand for more truck runs is there for the taking.

This demand might have an unexpected increase due to Amazon is building a million square foot distribution center and warehouse spanning 116 acres down the street from JKT’s terminal facility.  This new facility is expected to employ 1,000 people, which might assist JKT in attracting additional drivers.

It is important to note this is a business that has never had a marketing plan. The only marketing has been the spreading of the word of customer satisfaction by delivering exemplary service to current clients. The Company does more than deliver goods for customers, it delivers over-the-top reliability and boasts outstanding customer relationships. The strategy has worked extremely well, however, the addition of a sales person to build upon what has already been successful is all, but assured to make this company grow even further and faster. The best way to describe this company would be to say, “If you could create a trucking business generating outstanding returns, with an outstanding reputation, yet positioned for future growth, it would look just like this Company. The even better news is that the company already exists and is available for acquisition.

Financing/Terms:

The owners are open to some seller financing.