This client is a specialty trucking company focusing on over dimensional freight, with the flexibility to handle both van and flatbed transport. The Company has a well-earned reputation for performance and customer service and a premium ability to move product on time and on schedule. The Company controls its tractors through ownership and a specialized lease program with its owner-operators. The Company also owns its trailers. The combination allows the Company the flexibility to haul many different load types.
LEVEL OF INVOLVEMENT
Chairman’s View was initially retained to document and organize the company’s operational systems. After the initial engagement CV was retained to compile an offering document, and assist the owners with the transfer process.
INITIAL CHAIRMAN IMPRESSION
This client’s small size lends to an informal management structure, which combined with experienced personnel has been a significant part of the success. However, the informality that promotes such a strong team ethic is extremely hard to communicate to potential acquirers. This client required internal documentation on all of its personnel and processes.
COMPANY & OWNER GOALS
- Organize the company so it can be presented in a format that captures the value created by the owners.
- Layout a high level growth plan that can be executed and presented as part of the value presentation.
- Layout possible transition plans based on personal goals and planning.
COURSE OF ACTION
Through a shortened engagement, assessment staff documented all elements of this client’s business, and compiled their findings into an offering memorandum. Originally, the owners were seeking $1.5 million for their company, roughly the cost of their productive capital and a small goodwill addition. After our involvement, the client was put on the market at just under $3 million, twice the owner’s initial goal.