Below is a current list of potential opportunities:
Active Opportunities
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Flatbed Acquisition Opportunity: Asset-Light Carrier
Summary
Flatbed operation
Asset Light Business Model
Located in the Far West
Niche Longhaul Space
Operating footprint - Transcontinental
EBITDA - $1 million+ (average last three years)
$10 million+ in annual revenue
Debt Free
Average Associate Tenure > 10 years
In business for 50 years
Investment Highlights
- Diversified customer and commodity base
- Defensible Long Haul Strategy
- Strong rates + Utilization = Low OO Turnover
- Infrastructure will support additional growth
- Used equipment with rising values and existing equity
- Rising rates – favorable industry supply/demand dynamics
- Buyer - looking to acquire dry bulk, end dump, non-food grade carrier
- Seller - looking to sell Southeastern company driver based flatbed carrier with over 200 power units
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Flatbed Acquisition Opportunity
Unique Opportunity to Acquire an Industry Brand Name Carrier
Summary
Premier flatbed operation
Operating footprint - East of Rockies
235+ tractors; 400+ flatbed trailers
EBITDA - $4.7 million (average last three years)
Company drivers – operating leverage
$38 million+ in annual revenue
Investment Highlights
- Sector brand name
- Diversified customer and commodity base
- Strong rates
- Infrastructure will support additional growth
- Based in Southeast – positive demographic trends
- Used equipment with rising values and existing equity
- Heavy participation in steel hauling – “new auto market”
- Rising rates – favorable industry supply/demand dynamics
Timing is Everything…
“When we meet next year at this time in Dallas, we will be on the cusp of some of the best years in trucking’s history.” Bob Costello, Chief Economist, American Trucking Associations Transport Topics – October 25, 2010
“Looking ahead, we believe 1Q11 will most likely prove to be the inflection point of a TL cycle that has the potential to be steeper and longer in duration than any previous cycle. While TL supply/demand dynamics were much stronger in 2010 than most originally expected, we think it is only the tip of the iceberg, and we expect even more positive trends in 2011 in terms of TL rates and supply/demand dynamics. In this note, we will discuss the four primary factors that support our bullish stance, namely 1) state of the U.S. Class 8 tractor fleet, 2) inflationary cost pressures, 3) new government regulations, and 4) economic conditions.” Jack Waldo, Sr. Vice President, Stephens Inc. Transportation Research – January 20, 2011
2011 Could be a Great Freight Year
- ISM Survey: Capex to be up 14.5 percent in 2011 vs. 5.4 percent in 2010
- ABI index crossed 50 for the first time since late 2007
- IP growing at 2x to 3x GDP; IP creates freight
- Housing starts flattish, but
- Auto to be at 13.5 million to 14.0 million units; since 1970, only seven one-year increases exceed 1.5 million units Thom Albrecht, Managing Director, BB&T Capital Markets “Exploring Freight & Equipment Trends” – January 2011
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- Seller - looking to sell LT/LTL carrier
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