Location: Southeastern Michigan
Industry: Local Freight Company
Listing ID: FM230322TL
This company has a 25-year history of growth and profitability; no matter any prospective acquirer’s business background, this success story is one they will admire. Despite the ups and downs of the economy or the common challenges that are routine in the transport industry, this enterprise has continued to grow while building an excellent workforce inside and on the road. Today, 21 full-time drivers are running routes using 28 tractor/trucks and 42 trailers with the opportunity to expand utilization, this company is strategically positioned for a rapid pace of continued growth. Furthermore, and most important, it has the drivers to continue an even greater growth pattern moving forward.
2022 is off to a GREAT START…1Q22 revenue is up 12.41%, while profitability is up a whopping 59.38% over 1Q21!!!
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:
- Certified Michigan Motor Carrier
- Radio Dispatched Trucking Services
- 53’ Trailers
- LTL Trucking, Light Weight Freight Loads
- Straight Trucks with Life Gates
- Cargo Vans
- 100% Claim-Free Trucking
- Expedited Service, Same Day, Next Day Deliveries with a Sense of Urgency
- Cross Docking and Warehousing Services with Heated Storage for Freezable Products
- 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 Drivers and Vehicles, 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
- Driver or Driver & Truck at competitive hourly rates
- Member of the Michigan Trucking Association
Total Sales: $3,840,047
Cash Flow: $851,256
FFE: $1,740,350 (Included in Price)
Reason For Sale:
Owner to pursue other business opportunities
Training & Support:
The owner is willing to assist the acquirer in learning the business for a reasonable period of time.
Year Established: 1997
Year of Last Acquisition: 2017
Days & Hours of Operation: Monday - Friday; 6:00am – 6:00pm
Owner Hours Per Week: Part-time – few hours per day
Lease Option: Very flexible lease options
Monthly Rent: 2938.33
Type of Location: Private Trucking Terminal
Company operates a terminal, located a Southeastern Michigan. The terminal is currently on a five-year lease, expiring May 31, 2027, with flexible options of renewal. The monthly rental is based upon usage and currently is running about $2,938.33 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, trailers, and straight trucks
• 1.200 square feet for two Quonset huts for the mechanics’ garage
• 750 square foot warehouse and docks
• 576 square foot office suite #105
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.
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 25 years. It is the “Go To” trucking firm for safe and reliable deliveries.
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 the demand for more truck runs is there for the taking.
This demand might have an unexpected increase due to a million square foot Amazon distribution center and warehouse spanning 116 acres down the street from the company’s terminal facility. This new facility with 1,000 employees might help the company attract 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 salesperson 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 the company already exists and is available for acquisition.
The owner is open to some seller financing to assist in securing an SBA loan.