Just want some simple input from any small fleet owners, whether they just manage, or are O/O's. Im a business owner currently looking at buying another business (a freight /expedite company). I have yet to speak with the owner, but instead was looking for some insight from some people on these forums, before approaching. I have begun a small amount of research as I have no experience in trucking itself, but do know how to run a business. company does 1.8 million gross, 5 contracted drivers, trucks are all leased, business has been around roughly 25 years, most business is repeat. Owner is asking 500K, owner is not a driver. cash flow is around 165k.
Reading the OP post, brought up 2 different songs to my mind. 1st, was Another one bites the dust. 2nd Highway to the Danger Zone. Entering into a field you have no clue about and running a business in it dangerous to you and your Employees to be. Most cases the business bites the dust and closes eventually. I started to go to work for someone who never been in trucking, but bought 3 trucks and going into Business. In one day I went assigned a truck, and turned the truck back in and was accused of stealing said truck. In reality the Truck was not worth stealing if I wanted to.
All trucks are leased with 5 contracted drivers , no assets . 1.8 million gross . Net ? Did you ever think if the business was worth buying one of the contractors would buy it ? You want to get in the expedite with 5 trucks ? Spend less than half that much , buy 5 trucks like this and lease them to Panther or FedEX Custom Critical . 2006 Freightliner M2 22ft 84" slpr PRICE REDUCED!! Price: $ 25,000.00 USD
first thing yu learn in trucking is that gross income is a useless figure. this is such a high overhead business and it has a greater disparity between gross and net then probably any other business type there is
Thanks for input medicine. And Rick, lending in my area is horrible at the moment, I doubt one of the drivers would be able to put up the funds without such lending. The main reason I looked at this particular company instead of diy was because my broker had mentioned the business supposedly has great relations with the companies they run for. Whatever that might mean.
Maybe that could be interpreted as the current owner has great relations with the companies . But a new owner ? Are there solid contracts with the companies . If so how much longer are they in effect ? The contractors wouldn't need to buy the business . Do they have non-competition clause in the contract or could they just start their own business ?
I think RickG is right on on a couple of different points. Unless this guy has airtight contracts that you can assume, you're really not buying anything but a bunch of blue sky. Disclaimer: Not a trucker, but like to think I know a little bit about the business world.
