Transportation and Logistics Provider $600K+ EBITDA PA/NJ/NY/CT region.

October 25, 2023

by a searcher from Harvard University in Rye Beach, Rye, NH, USA

Ahoy Searchfunder Friends - I recently signed an LOI to acquire a regional Transportation and Logistics Provider in Southeast PA with $600K+ EBITDA. They focus on LTL, scheduled, and currier services with largely reoccurring revenue highly concentrated amongst a small###-###-#### group of long standing###-###-#### years) customers.

Initial concentration risk mitigation strategy: modest multiple, 20% seller note, delayed real estate acquisition (24 mo call option), verification that relationship is a mgmt level (not sellers, who live in FL).
Would love to connect with any operators, advisors, or investors that know this industry and would be willing to chat as I get into diligence.

Thanks much, Greg

Reply by a searcher
from Northwestern University in Park Ridge, IL, USA

I would agree with Alexander about trucking. The best indicator how they are doing is how the independents are doing and if they are driving for uber. Even with a steady customer base, the cost of switching is low so the customers could put the routes to tender and you lose your business since the market is very soft

Reply by a searcher
from Northwestern University in Naperville, IL, USA

That post is still quite relevant and there is another aspect - in 2021 and 2022 the truckload market was quite strong, so if you are looking at 3 year EBITDA number, it will be very misleading. I am still strongly opposed to acquiring trucking/logistics companies.

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