Knight attempting hostile takeover of USA Truck

Growth. It just looks good to buyout a failing company.But u can grow your company faster by acquiring another.

 

Dude doesn't realize almost all of our trucks are leased, not owned along with many our or so called terminals.. They will either have to buy them at the end of the lease or turn them in. Not much to gain there. And Thomas is right. If they were even close to the company he claims they are they would be getting the business without the buyout. Everyone else does...

And the same applies to the drivers. If knight was that good for the drivers they wouldn't need a buyout to get them either. They would be flocking to the company in masses.

 

Maybe so,time will tell

 

Knight buys everything cash. Trucks, terminals. So he would have to sell USA's trucks since they are leased.

 

Mergers and acquisitions have strategies and stages and so Knight didn't fail in a takeover, they just ran a typical play for USA Truck.

For awhile USA Truck shareholders will be forced promote the company in the best light. While their customers may look for a different carrier thinking better rates are elsewhere. USA Truck can't blow off the environment that Knight can force on them by publicly valuing them at a low share offer.

It doesn't matter which company you work for or will eventually work for. Just do your best, service your customers, that's how you help your company thrive.

 

So knight with 4100 trucks is only almost going to hit the billion mark, but lowly ol USA with only 2400 trucks is doing 450 to 500. I know it's been a while since school for me, but the last time I checked my guzinta's (math), but by using YOUR numbers it looks as tho $$$ per truck is better for us than you. I don't know the numbers but you who seem to know so much, I'll use your numbers to show how much you really don't know

 

@RetiredSarge... HUH?

 

use your math, you say we are doing half the money of knight, we also have half the trucks you do. Your math doesn't add up to us not doing as good as you, just using your math.

 

Some of the other posters have asked why Knight would want to buy USA truck instead of just taking their customers. Here are some of the Business 101 answers:

(A) buying a company open the tax code door to something called "extraordinary expenses" where lots of tax deductions and write-offs are available to the takeover company that normally would not be allowed to a regular company.

(B) most of Knight's larger customers are locked into contracts that have escape clauses forcing the customer to pay USA truck if they bail before the end of the contract if USA truck lived up to its service level agreements. Buying USA truck gets Knight those customers at the current locked in price.

(C) Knight thinks it can carry the freight of USA's customer cheaper with its own and newly acquired infrastructure.

(D) duplicate facilities like training facilities, depots, repair shops all sit on real estate. That real estate, either Knight's or USA's duplicate facility, can be sold or leased out for a profit way more than the current stock price of USA Truck. This might be one of the largest motivating factors. If you want a past example take a look at the Business example of E. J. Korvettes, a NY department store chain that suddenly liquidated itself in the early 1970s because the owners realized that the real estate alone that chain held was three times more valuable than the net worth of the company.

(E) Acquiring USA truck also pushes the economy of scale of Knight up to another level when negotiating for tires, trucks, trailers, insurance, etc. The more you have the better the deal you can negotiate.

The idea of any business is to make money. A service or product is the means to get to the goal of making money for the stockholders. Don't lose sight of that. If any company realizes that they can fire 50% of their workers and make 25% in profit as a result you can rest assured the pink slips will go out ASAP. Business is not jobs. Business is money. Plain and simple.

 

Duh! If your company was doing as good as Knight.... would we be talking about this right now? Make some sense man. I'm going off of the number reported on USA's report about revenue. Face it man.... your company is a complete failure at the moment, and has been since the 2008-2009 recession when all of this started. I know it's hard for you that's totally committed to USA to face the fact that your company isn't making enough money to stay afloat, but it's a fact. I'm tired of explaining the numbers to you, and I'm tired of trying to explain this whole process because some of you at USA seems a lil slow, and a bit much to caught up sipping USA's kool -aid, and to blind to see that you are working for a company that will either be brought out or just go under one day in the near future. You're to blind to see that a bigger, much more successful carrier is trying to buy out your company, and in return give you better opportunities to make more money. Just knowing that you will be working for a debt free company that pays cash for everything should be enough to amp you up. But you're just to blind to see it. When this acquisition takes place, and know that it will because I just read on Knight's SEC filing that they've brought more stock of USA just the other day, and they will not stop until its's done because Knight has the best attorneys they can get... don't say I didn't warn you, and I hope to meet you, and JFROG, and all the others that so called bash me so that we can talk man to man.