Each quarter, I provide the needs of Ahern’s clients so that my readers can determine if they are ready to “begin the process”. 2014 was a very profitable year for many Carriers, but also a very challenging year. The 1st quarterof 2015, has been very active for my firm; as such, our clients have advised us of their needs through August of 2015.
In each instance, Ahern has been retained in an advisory capacity to introduce clients to parties interested in selling;
Client 1 has been in business since 1949.
- They are primarily a provider of logistics solutions for agriculture, construction, energy, manufacturing, mining and oil refining.
- Revenues exceed $800MM annually.
- Client interested in expanding their operating “footprint” in the “light asset” business models.
- If you are a freight brokers, or 3PL focusing on agricultural bulk commodities, energy, mining or other niche markets you are a company that would be of interest.
A long-time client, whose revenues are in excess of $300MM annually.
- The client has been in business for 60+years;
- Client is primarily a “light” asset based business;
- Company is involved in TL, LTL, Freight brokerage, Intermodal, and Van;
- The client is willing to look at companies that generates $3MM-$40MM of annual revenue and will look at some company assets;
- Client is only interested in acquiring transportation companies that are located in the State of California.
Additionally, if you have warehousing in California, and if it can be consolidated into one of their warehousing facilities, that’s a plus.
An existing Ahern client that is looking to expand their operating “footprint”.
- They like to acquire companies whose revenue are in excess of $50MM;
- They like to acquire them as an investor company and grow the business; will acquire at least 50% or more of business.
This is one of the largest transportation providers of supply chain solutions, and domestic transportation services in the United States.
- They are active in all forms of freight distribution.
- They are looking for freight brokers that generate $15MM to $150MM annual revenue.
- Company must have strong operating margins.
- Must have a good diversity of business.
In all cases, the business must be non-asset based.
This client is an Ahern long term customer;
- They are one of the top flatbed providers in the country;
- The target companies are $10MM – $40MM of annual revenue;
- They are looking primarily for owner/operator flatbed companies;
- The company can be profitable or nonprofit able;
A well-established Transportation Company, operating primarily vans, looking to extend their operating “footprint” throughout the United States.
- Client currently operates approximately 600 tractors;
- They are willing to look at trucking companies that are marginally profitable;
- They want to acquire the assets of the business and pay for the customer base;
- They can move quickly; and
- They want the management to continue to stay and assist in growing the business.
A well-established trucking company that has been in business for approximately 15 years, currently operating 450 trucks.
- They are looking for a TL, Van, OTR Carrier;
- The Carrier must operate east of the Mississippi;
- The primary lanes are IN, KY, IL, LA, WV, GA, and PA;
- The average length of haul should be 300 – 400 miles;
- They are looking to acquire companies that have 30 – 100 trucks and can close quickly.
An existing Ahern client looking to acquire specialized flatbed carriers that generate at least $100MM in annual revenue; company must be:
- Possess excellent management staff.
- Management staff wants to stay and assist in growing the business, and;
- The company must historically demonstrate growth and strong profitability.
Any asset trucking company that’s looking for a strong financial partner, this would be a good “fit”.
A Flatbed Carrier whose revenues approximate $85MM, and growing.
- The clients average length of haul is 500 miles;
- Their primary traffic lanes are: AL, MS, IN, IL, OH, PA, NJ, TN, and GA.
- They are looking to acquire companies that are $5MM-$30MM in annual flatbed revenue.
- Client is looking primarily for asset based businesses, but will consider a non-asset based Flatbed broker;
- The client focuses on generic movements of metal products.
Well-recognized Transportation Company, whose revenue exceeds $1 billion, annually;
- Client is looking to establish ownership of companies with revenues of $150MM, and over;
- They are willing to acquire 50% to 60% of the business; and
- Established a formula, so that when an owner is ready to “exit” the business, they are willing to acquire the balance of the businessat a predetermined formula.
- Refrigerated Carriers;
- Flatbed Carriers;
- Van, OTR Carriers; and
The client will look at;
- Asset or non-asset based business, but their threshold must be $150MM of revenue and over.
- Strong earnings EBIT/EBITDA a must.
- Strong management a must.
Client is a bulk commodity company looking to expand itsoperating footprint.
Prefers companies that generate:
- $15MM – $40MM of annual revenue.
- Company must have good earnings and strong management.
- Client will allow seller to retain some ownership if desired.
If your company is a fit with any of the above clients, or you know of a company, please contact Andy Ahern/Brian Haley at (602)242-1030, or email: email@example.com
QUOTE OF THE WEEK:
“Teaching may be compared to selling commodities. No one can sell unless somebody buys” (Author: John Dewey)