This company has been the logistics and moving & storage provider of choice in their region since 1995. The owner is approaching retirement and is seeking a situation that will both assure the ongoing success of the company and allow him to retire following a suitable training and transition period. The business is affiliated with a leading van line on the moving & storage side and is an agent for an international freight company on the logistics side. Their product offering and revenue streams are nicely diversified. 40% of their revenue comes through providing logistical support to large regional companies, 40% comes through contracted work with the U.S. Government, and 20% comes from commercial/residential moving and storage. They currently lease 35,000+ feet of commercial space dedicated to both logistics and government storage. They use an integrated warehouse management system which is well known to the industry and provides their clients ready access to accurate records of their inventory in storage. The business, based on their service offering, generally operates 5 days per week with weekends only as needed. There is a fully developed, highly experienced staff in place along with a seasoned group of independent owner/operators (drivers). They have more than 25 pieces of “major” equipment, including several straight trucks, power units, trailers, flatbeds, etc. The business is operating well on all fronts, poised for growth in all three of their core offerings, and well positioned for an ambitious new owner to come in and take over. This deal is pre-approved for SBA financing with a down payment of $215,000. The down payment includes all bank fees AND $75,000 in working capital. Based on historical financials the buyer would recover the entire down payment in less than 15 months with $170,000 of free cash flow AFTER debt service.
The US economy is driven by entrepreneurs - small and mid-market businesses, more than 20 million of them, many of them privately owned. It is often difficult for owners to convert all their hard work and ingenuity into an equity event. It is a complex and time-consuming process. We understand the grind of running your own show and the uncertainty of getting the most value for the business. Stony Hill Advisors has the experience and expertise to assist with selling a private business successfully.
Are you looking for guidance?
We have experience in the small and mid-market business market with companies having revenues from $1M to $50M . We can provide advice on preparing a business for sale, even years in advance. We can help buyers find the right business for their circumstances. And we advise both sellers and buyers throughout the process to assure a quick, smooth transfer of ownership. In some instances, the parties to a transaction locate each other through informal industry or personal channels. These transactions include sales to unrelated third party acquirers, as well as management, family and partner buyouts. Stony Hill Advisors is frequently engaged to structure these transactions and navigate the many issues requiring attention from the initial stages to the consummation of the transaction. Often Stony Hill Advisors is engaged to provide Exit Value Planning to prepare a business for highest value when it is time to transition.
Are you interested in buying a business?
Stony Hill Advisors assists companies, entrepreneurs and corporate executives develop and execute customized acquisition strategies designed to result in successful acquisitions. We will find a unique business that is not necessarily “on the market”, resulting in a cost-effective acquisition.