Images.bizbuysell.com



Asking Price: $234,000

JS Express is a completely turn-key, no office space opportunity with a history of repeat/referral business. The seller has decided to move on to new opportunities and is willing to sell at a significant discount. Seller will provide key assets and train a new buyer how to build off this very profitable trucking company. This business creates an opportunity to grow as a standalone or build in-house distribution capabilities for an existing ecommerce business. Additional potential for buyer to benefit from tax advantages of acquiring primarily hard asset business. Low overhead, low asking price, and plenty of scaling opportunities make this a perfect opportunity for someone looking to jump into this highly lucrative (Covid pandemic stable) industry.

Company Overview

JS Express is a completely turn-key, no office space opportunity with huge repeat/referral business. The business has a history of significant profitability and a positive reputation in the industry, and offers potential to build in-house distribution capabilities for an existing ecommerce business. Low overhead, low asking price, and plenty of scaling opportunities make this a perfect opportunity for someone looking to jump into this highly lucrative (Covid pandemic stable) industry.

The business is in the transport vertical, moving/distributing freight across 48 states. Each load averages $1000 a day in gross revenue. Trucks typically handle 2-3 loads per week (average ~$5000 in a week). Drivers are typically paid $200-300 per day (~$0.45 – $0.55/ mile). Remaining expenses are fuel and truck maintenance as needed. Typically, $300 of fuel a day will last them all day driving nonstop. Per truck net profit is ~$90,000 profit per year. Inventory and supply expenses is minimal.

This business was run in a very agile manner and achieved balance with longer term contracts when appropriate. Current owners have been successful in securing more substantial contracts with large third parties (UPS, Amazon) during peak seasons (holidays). These contracts provide consistency which benefits (and is attractive) to drivers and dispatchers. The market for drivers is competitive, better drivers cost more but are typically more reliable and help with customer satisfaction and more repeat customers.

Typical day for owner is early morning start (typically around 6am) and few hours to cover all trucks and then work ahead to book loads earlier throughout the week. The rest of the time is spent on-call and arranging contract drivers (negotiating salary). Current owner is willing to train, and introduce to key contacts (brokers, vendors and drivers) and how to best utilize each truck/ route to maximize revenue

Marketing consists of posting on job websites for drivers and posting on DAT load board and Truck stop for freight. Scaling opportunities include investing in more trucks to meet demand, expanding with brokers to access higher end loads, and expanding marketing efforts overall to ensure consistent volume.

No need for industry experience, current owner will train. Just some just some negotiation and phone skills, and you’re ready to ‘hit the road’.

Seller Interview

General Information

List all Website Domains that will be offered for sale (if any)

-N/A

Name and Address of Business

-JS Express LLC

4106 Autumnwind ct, Rocklin, CA 95677

Who are the Business Owners / Shareholders

-Jason Scriabin

Why are you selling the business?

-Moving to another business

Age of Business

-3 years

Please describe the products/services offered

-Moving/distributing freight across 48 states

What is your average value per order or load? What are your price profiles for each of your services?

-Each load averages $1000 a day in gross revenue. Trucks typically handle 2-3 loads per week (average ~$5000 in a week)

Drivers are typically paid $200-300 per day (~$0.45 – $0.55/ mile). Remaining expenses are fuel and if any truck maintenance. Typically, $300 of fuel a day will last them all day driving nonstop.

-Per truck net profit is ~$90,000 profit per year

Do you stock any physical inventory of any kind? If so, please explain.

-We hold no inventory and supply expenses is minimal. When moving multiple runs or partials, we unload client inventory at a warehouse and crossdock supplies together for the truck

Is there any level of seasonality to your business? If so, please explain

-Summer and winter are extremely hot beginning of January and February are slow seasons

Please describe your upfront capital commitment and benefits to a buyer from acquiring an established company and motor carrier number.

- I purchased 4 trucks averaging around $75,000 each and trailers for both $15,000.

- Purchasing an established and reputable motor carrier number allows the new owner to benefit by securing better loads from brokers, cheaper insurance rates, and helps attract better drivers because of the established track record. This is a much more efficient approach than having to build a reputation when starting out with a new MC#

- Additionally, I will remain during a transition period and help the new owner understand the ins and outs of the business, introduce to key contacts (brokers, vendors and drivers) and how to best utilize each truck/ route to maximize revenue

List any working capital requirements for your business (ie – do you offer payment terms to your customers or do they pay you in cash)?

-N/A or very little. Most customers pay by check within 2-3days. Can use factoring companies if needed to get paid quicker

What growth opportunities are available to the business?

-Invest in more trucks to meet the available demand. Continue to focus on expanding contacts with brokers to broaden access to top dollar loads. Expand marketing efforts to ensure consistent volume

Do any customers comprise more than 15% of your sales?

-N/A

Will you have any issues signing a post-acquisition Non-Compete?

-No problem, will sign if needed

Describe the typical customer for the company by demographics, spending patterns, life-time value

-We have built a reputation and have customers that want to use us more often and our relationship allows us to often charge top price per load.

- We work with many different brokers to maximize our volume and rate, depending on our work load. This includes bigger brokers such as CH Robinson, Coyote, JB Hunt will produce more loads but not often the best price. But some smaller brokers will have top prices but lower quantity of freight.

Please describe longer term 3rd party contract (Starbucks, UPS). How are these secured? Length of contracts? Likelihood to repeat?

- We have been successful in securing more substantial contracts with large third parties (UPS, Amazon) during peak seasons (holidays). These contracts provide consistency which benefits (and is attractive) to our drivers and dispatchers. These runs are always available and can be contracted for a specified length to do the runs, and typically carry higher pricing because of peak season.

Work Load

How many hours per week do you work on the Business?

-Early morning start (typically around 6am) and few hours to cover all trucks and then work ahead to book loads earlier throughout the week. But must be on call in case something happens on the road

What are your primary tasks for the Business?

-Making sure drivers understand and do their work and each truck is loaded and moving

Do you have employees? If so, please identify their title and full/part time status.

-N/A

Number of Customer Service contacts per day (Phone, Email, Text, Social Media)

-Can be just 1 and can get everything done or have to expand and get more contacts from brokers for more loads

General overview of daily operations

-Book load(full load or partial) send information to drivers, make sure they are loaded and on time for delivery

Customer Support: describe how customer calls/emails/complaints/questions are handled and any systems used (CRM, etc.)

-Send emails to my existing brokers to see if they have freight where my trucks are, also post my trucks and brokers call/email me on their availability.

Please describe your process for engaging contract drivers. How are they sourced? How is pay negotiated, etc?

-Contact all drivers through phone (call/text), pay based on experienced avg around $.50

Trade Secrets, Marketing and Sales Channels

Does the company own any intellectual property? If so, please explain.

-N/A

Does the company have any trade secrets that are unknown to the general public?

-Partial loads if there is room in the truck, utilize the entire truck

About how many orders do you process daily?

-1-6 orders (loads) per day

Current arrangements with advertising agencies, affiliates and marketing consultants, if any

-N/A

What marketing tactics do you currently employ?

-Post on job websites for drivers and post on DAT load board and Truck stop for freight

What type of marketing would you focus on if you were to keep the business?

-The market for drivers is very competitive. We work hard to attract the better drivers but is always a challenge. Better drivers cost more but are typically more reliable and also help with customer satisfaction and more repeat customers.

Securing bigger contracts as noted above also helps with driver retention. Consistent and routine traffic is often attractive to drivers. Just need to balance with attracting the highest priced loads

Size of your email / customer database

-1000+

What percentage of orders are repeat customers?

-70%

Do you actively engage in social media? If so, what is your strategy?

-N/A

Website Platform: describe the different systems/technologies in use

-N/A

List of any software used, indicating owned or disclosing the identity of the licensor

-PingHQ for the website that you load in and input load information so you can keep track where truck is and what types of loads. HOS reporter is for the ELD log in for drivers to log in and track their hours. There are many different websites and ELD tracking you can use

Describe any special skills a buyer will need to learn in order to run and grow the business

-Not needed, just some negotiation and phone skills because talking to broker is crucial and you would want to negotiate for the best price!

Description of online security systems, compliance and contingency/disruption plans

-N/A

-----------------------

JS Express Inc.

Key Valuation Variables

➢ Exciting opportunity to buy a turn-key operation for a very profitable trucking company at a significant discount. Seller will provide comprehensive training.

➢ Positive reputation in industry and significant repeat customer base.

➢ Low overhead and agile operations allow the company to maximize profits

➢ Agility and flexibility creates significant advantage over larger corporate competitors through ability react quickly to profitable market opportunities.

➢ Asking price below required startup costs. Also benefit from acquiring an existing motor carrier number which brings with it an established track record and ability to secure better loads and lower insurance rates.

➢ Business is completely turnkey and transferrable. Can be run from anywhere with very minimal overhead.

➢ Great add-on opportunity to an existing freight or logistics company. Or an opportunity to build in-house distribution capabilities for an existing ecommerce business

➢ Large percentage of revenues are from repeat customers (70%); huge referral business

➢ Very scalable business

Scale Opportunities

➢ Email Marketing - 12,700+ emails on file

➢ Already massive freight tonnage in the US expected to increase by 25.6% to 20.5 billion tons by 2030. With it revenues are expected to increase by almost 54% to $1.6 Trillion.

o

➢ Growth in ecommerce will continue to drive increasing demand for freight and cargo transportation. Flexible and agile carriers will be best positioned to meet this demand.

➢ Private fleets continue to grab a greater share of the market. (see article below).

o

➢ Opportunity to build on existing capabilities, invest in additional technologies to improve efficiencies

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download