Acquisition Opportunity
from Empire Business Associates

Trucking Company

Executive Summary

Empire Business Associates, a Northeast Ohio merger and acquisition firm, represents the owner of a family- owned, regional Refrigerated Trucking company that is available for acquisition.  Founded in 1973 and incorporated in 1981, this Company enjoys an excellent reputation with its Frozen Food Industry shippers for providing consistent, dependable Refrigerated Delivery service at competitive pricing with an outstanding safety and performance record.

Operating in the “constant and stable” demand environment of the food industry, this Regional Carrier represents an exceptional opportunity to be:

• acquired as a stand-alone business, operating in its niche
• an acquisition providing additional Refrigerated shipping capacity and coverage into the Eastern, Southern and Mid-western United States
• additional specialized Refrigeration transport complimenting an existing fleet capability.

The Company’s customer base is comprised primarily of 3 major customer shipper relationships that have been developed and cultivated over the past 30 years:

• Meat Processor
• Frozen Dinner Producer
• Juice Packager

Additional customers include various food and beverage producers requiring frozen or refrigerated transport needs.  Prospects needing shipping services and additional capacity represent revenue potential as growth targets to developing the business further.

The Company has earned its reputation for integrity, superior performance in on-time delivery and pick-up service and consistent operations created by the “personal touch” of its family member owners and the long tenure of a highly qualified team of associates all acting in testimony to the long standing customer relationships enjoyed and ongoing customer satisfaction/ value they create.

In business development terms, the primary marketing of the company has been developed organically, primarily through relationship-building, consistency of operations performance and brokerage services, customer referrals and testimonials, competitive pricing, service integrity and the use of a promotional Sales brochure.  The owner believes that an increased marketing effort including development of a website platform could substantially increase market awareness leading to an increase in sales and profits as well as act as a focal point for additional on-line customer service support and a reporting platform.

  The business includes the following assets:

• TerminalBuildingon 5 acres
• Office- 1,500 square feet
• 3 Bay Garage including overhead crane
• Inventory/ Parts Shop
• Terminal Complex/ Yard
• 12,000 gallon above ground fueling station
• 38 Trailers
• 20 Cabs

Investment Considerations

There are numerous benefits for a buyer who purchases this well-established business including:  

• The Company has been in business for 30 years and enjoys an excellent reputation within the industry. 
• The Company has an established business model with considerable goodwill through sustained performance/ reputation and a ready customer base with a high percentage of repeat sales from existing customers. 
• The Company has a reputation for “doing the right things” with a “client focus” providing consistency of operations with full disclosure, candor, honesty and integrity.  A recent O.D.O.T. review audit yielded positive comments and awarded a satisfactory status rating. 
• The Company has an established niche with its Refrigerated transportation services acting as a “carrier of choice” for several key frozen food manufacturers and packagers.  Its customers are in a growth mode and are seeking their suppliers to continue growing with them. 
• The company provides Refrigerated transportation carrier services through several segments to maximize capacity as its primary revenue focus.  Additional related services are offered in repair and refurbish, inventory/ parts and fueling services which, with additional focus, could serve to significantly expand revenue opportunities. 
• The company’s marketing efforts have been limited with reliance upon repeat customers and referral and a primary, promotional brochure outlining the company’s service offerings.  The development of a web site and Internet presence along with a renewed sales and marketing effort could further result in substantial, increased sales and profits for the new owner. 
• The business is a “self-standing, turn-key” operation with assets in a building, infrastructure, vehicles, experienced and dependable personnel and a solid reputation. 

Financial Information

Reason for Sale & Transition Plan

The husband passed away in 2008 and business is now owned by the wife.  She is not involved in the day to day operation of the business.  She is interested in looking at her options with regard to selling the business. The current General Manager/CEO is the son who is currently running the business.

 The General Manager/CEO (son) would prefer to remain with the business after the sale of the company.  If not, he would stay for a reasonable period of time during which an orderly transition can take place.  This includes the divulgence of any and all proprietary knowledge necessary to operate the business and preparation of the company’s customers, vendors, and employees to facilitate a smooth transition.

Price & Terms

The price of the business is $1,190,000.00, which includes the following assets of the business: customer list, existing booked business, office equipment, tractors and trailers (approximate value of $746,500), garage equipment, inventory, fixtures, supplies, goodwill and going concern values attached to the company. Those assets not included in the price of the business are the cash, accounts receivable (unless purchased), and accounts payable.  The buyer would also receive $60,000.00 of inventory with the business. An adjustment up or down of the inventory would be made at the time of closing.

 The owner is willing to rent or sell the real estate with the business.  The asking price for the real estate which includes a modern office building and a full service repair shop with 3 bays and an overhead crane on approximately 5 acres is $535,000.