Operational Review Case Study #2
Minneapolis, MN. Ahern was brought in to review and implement operational changes for this Midwestern carrier. At that time, the client’s revenues approximated $35.0 to $40.0 million:
- The client had many family members;
- The client was having a difficult time cash flowing;
- The client was not very profitable;
- The client had numerous shipper problems.
Ahern was able to:
- Implement approximately $1.0 million in operational savings;
- Ahern was able to assist in renegotiating terms with existing lenders;
- Ahern was able to restructure specific job responsibilities;
- Ahern was able to review and implement numerous lane changes, which brought more profitability to the company;
- Ahern implemented a new sales and incentive program to increase company sales/profitability.
The client eventually sold to a large public corporation:
- The client was a $50.0 million carrier;
- Their operating ratio was 95%;
- They received approximately $5.0 million for the sale of their company.