Re: 1202 QSBS, C-Corp discount for trucking/logistics

by a searcher from University of Colorado at Boulder

3 years ago

Told by biz broker that ‘all transactions in trucking are structured as asset sales’.. which makes sense, buyer can step up asset basis and depreciate. 

Incorporate w/ sec 1202 QSBS is preferred structure. Is this a nonstarter, or is it not a huge issue - just subject to some discount to account for lack of basis step up value?

Also, if there are any brokers on here that are active in the trucking/logistics world - told 5-7x EBITDA multiple is range for flatbed/heavy-haul biz doing $3mm EBITDA, 12% EBITDA margins. Roughly 20% revs from brokerage. Would be interested to know if this multiple is realistic, and hear about recent transactions. 

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searcher from University of Colorado at Boulder

Thanks everyone. Very helpful. Might reach out as situation develops.

3 years ago | like reply | 0 likes

searcher from The University of Arizona - Eller College of Management

5-7x EBITDA multiple is a little high. Lots of factors depending, 5x would be my guess given those margins. Would need to know more about cash flow conversion (i.e. capex), customer diversification, etc.. Would also like to see EBITDAR. All we do is trucking and logistics and sold a flatbed business this last summer.

3 years ago | like reply | 0 likes

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