Company Evaluations
As a transportation management consulting company, Ahern & Associates has ongoing and substantial expertise in evaluating trucking companies. Whether you're interested in successor planning or you need a factual analysis of the true net worth of your trucking company, Ahern provides that service. Our reviews are based upon firsthand knowledge of the selling prices of numerous trucking companies that are not readily available to accountants, attorneys, investment bankers and/or the IRS.
New Capital Formation
In reference to New Capital Formations, Ahern has a limited number of transportation investors who are willing to provide short term capital to companies within the trucking industry. Ahern works with these individuals, on a daily basis, and because of Ahern's "sphere of influence" we can introduce these customers to trucking companies whose profiles match our customers' objectives.
Operational Review / Audit
Ahern has a staff of "seasoned" transportation specialists, ex-presidents and Chief Executive Officers whose experience allows them to seek out and identity all possible savings of time and money as well as opportunities for revenue and capital enhancement. Our experienced staff specializes in companies facing bankruptcy protection from creditors.
- 50% of Ahern’s business is involved in improving the bottom line profitability/efficiency of trucking and logistics companies. It is not unusual for companies that have these common challenges to utilize our review and auditing services.
- Due to our vast experience, Ahern has determined:
- For many trucking companies, their single largest challenge is sustaining growth
- Most owners of trucking companies have no definite long term plans in place
- Most have no short to mid-range plans in place including 1, 3 and 5 year plans
- Many either have no goals and objectives or fail to effectively communicate them to the organization
- These are common issues for many trucking companies, but in order to achieve and compete, companies need to implement this type of growth strategy.
- With that stated, companies must consider the following issues when considering future growth strategies:
- What would this do to their bottom line?
- What type of capital would this move require?
- Realistically, how long will it take and what liabilities will be incurred if the company decides to expand?
For most, it is one thing to state that you would like to grow you revenue, another to be able to devise a plan to achieve this without risking the stability of your company.
- Additionally, companies should constantly be thinking about the following:
- Increasing their cash flow.
- Reducing their operating cost, and;
- Improving their profitability
Ahern and Associates has many exclusive programs designed around visiting a client “on site” for 3 days
- We charge a flat fee, and;
- All travel expenses incurred by our auditors are reimbursed prior to leaving the terminal facility.
During Ahern’s initial review, we will review dispatch procedures, marketing, sales traffic lanes, computer systems in use, maintenance, etc. Additionally, we will review operational and statistical data including:
- Loads per week
- Revenue per load
- Revenue per mile – loaded
- Revenue per mile – all miles
- Empty mile ratio
- Customer profitability
- Recruitment and training
- Driver pay scale
- Key personnel
- Internal purchasing
- Growth strategies
- Maintenance programs
- Sales and marketing programs
While our consultants are on site, we create a software program designed to analyze customer profitability. This software is a profitability program specifically signed for the trucking industry, and it will analyze revenue per mile, revenue per load, per customer, operating ratio per load, per customer and per dispatch, fuel surcharge revenue per load, and per customer lane. In fact, the software also provides a “what if” scenario to test future variables that can affect your business.
When completing an operational review, we examine every facet of a client’s business from operations, productivity, marketing, and sales to customer service. We analyze; financial data, gather and review reporting methods, accounting systems, computer programs and the competency of the staff that supports each facet of the business.
Our inquiries are designed to seek out and identify all possible savings of time and money, as well as opportunities for revenue and capital enhancement.
For transportation companies that have company fleets, we provide a comprehensive review of the existing maintenance programs. For clients threatened with extreme confiscatory actions by major creditors and lenders, we have been successful in creating special “doomsday” accommodations that provide up to a 45 – 60 day window of restructuring opportunity, rather than the time and money wasting legal maneuvers of a Chapter 11 action.
All fees are quoted on a flat charge basis with performance provisions included.
Reorganization
Ahern has developed a customized restructuring plan to avoid the bankruptcy route. Our plan includes certain basic elements, such as "45-day window" in which cash hemorrhaging is stopped, critical personnel changes are initiated, and operating procedures are addressed to reduce costs.
Bankruptcy/Reorganization
If bankruptcy cannot be avoided, Ahern offers techniques to pre-package the proceedings, so that a client emerges, when able, to achieve operational and financial health. Ahern works directly with its clients' legal and accounting firms to make sure that the trucking company is able to "exit" and cash flow and service their debt going forward.
Leveraged/Management Buyout
If there is no generation to inherit a business or no satisfactory outside Buyer "knocking on the door", Ahern has a program to continue the business with a sale to management or an employee group.
Cost and Profitability Analysis
Ahern has developed a special software package that can create an operating ratio for each truck dispatch, whether it's truckload or less than truckload. The program allocates total cost, including direct, indirect, administrative, and overhead for each shipment, trip, or any other party or business that you analyze.
Arkansas Transit Home, Inc. (ATH) was founded in 1958 by my late father, Wendell Chandler. In fact, to Illustrate how long that is got most trucking companies, our DOT number only has five numbers.
I would like to thank you Andy for making this very important and life changing event possible. It was a great experience.
Sincerely,
Dwight Chandler
President
Arkansas Transit Homes, Inc.
We have worked with you and your colleagues at Ahern Associates for some time now. We find your expertise in the area of logistics (be it in consulting or based on being hired for acquisition analysis) to be out standing. We value the relationship and are very happy to give you this letter of reference..
You should feel free to have any party call us to discuss our experience.
Sincerely,
James M.Hill
Benesch Attorneys at Law
England has been formally associated with Andy Ahern and his colleagues for approximately the past three years primarily in the area of acquisitions. During that period, we have experienced a professionalism that is refreshing. Andy offers in-depth expertise as well as industry knowledge born from extensive experience, a combination which adds material value well beyond a normal business relationship.
We anticipate a long – term, mutually beneficial association. It was a great experience.
Very truly yours,
Keith c. Wallace,Jr.
Senior Vice President / Chief Financial Officer
C.R. England, Ind
Century Carriers, Inc. and its subsidiaries are family owned businesses that was started 1998. When the Transportation business was booming, times were great but, like other family owned businesses we didn’t prepare for the economy the past year. My wife and I lost many hours sleep and made many calls to attorneys, banks, and whom ever would listen to our story trying to figure out how we were going to save our business for our future and our children.
Andy and his team has given us hope that there is light at the end of the tunnel and we are making progress, thanks again.
Sincerely,
Kevin Henderson, President/CEO
Century Carriers Inc. / Century Expedited Inc.
Originally, I met Andy at a Truckload Carrier`s Conference during a round table discussion on the transition of family business. Andy was very knowledgeable about the topic and expressed many ideas that we hadn`t thought of. During the down turn of our industry in 2001, We called upon Andy, as a consultant, to help us understand how to turn our business around. We hired Ahern and Associates to come in and do businesses review. By giving us a road map to success with their intial audit, they helped turn our business around within thirty days.
Andy Ahern and Ahern & Associates have always delivered exactly what they have promised.
Sincerely,
Don Christenson, President
Christenson Transportation, Inc.
We have thought about selling our business one day, but we really didn’t know much about how to go about it. Your company contacted us a few months ago about a client of yours that was looking to buy businesses like ours. Now just a few months later, the sale is complete. Everything went very smoothly, Ahern was there to guide us through the beginning of the process. We are very happy with our whole experience with Ahern, especially Andy and Brian. They gave us personal attention any time we had questions or concerns.
Thank you,
John & Jennifer Rainney
DCT
I wanted to thank you for your guidance, leadership and support. The professionalism and dedication of you and your staff is outstanding. The knowledge you posses of the transportation industry and its inner workings was been a huge asset to us in our time of transition. With your assistance we have been able to make significant changes within our company to improve structure and productivity. Aherns onsite visit and detailed evaluation of our company has been a very valuable tool. The outside look at how we do business and the suggestions you've made to improve our overall performance have been very valuable. All of your advice and direction has been thoughtful and caring, I feel that you truly care about our business and success. You've done everything you said you would do and then some, working with you and your dedicated staff has been a pleasure and will improve the productivity of our company. I look forward to a long relationship with Ahern and Associates.
Thanks again,
Dave Dean
Specialized Business Solutions. INC
Meridian, Idaho
