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Acquisitions Anonymous - #1 for business buying, selling and operating

Is It Profitable Owning a Trucking Business? A $4.7M EBITDA Analysis

01 Oct 2024

Description

In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill D’Alessandro, Heather Endresen, and Mills Snell evaluate a nationwide refrigerated and dry freight trucking company with $4.7 million in EBITDA. The discussion touches on the challenges of owning a trucking business in a volatile freight industry, the risks associated with owning 35 trucks, and the pros and cons of doubling fleet size to 60 trucks. They also explore the cyclical nature of the trucking industry and whether selling trucks and focusing on freight booking could increase profitability.Key Points Discussed:• Asset-Heavy vs. Asset-Light: The risks of owning trucks and the benefits of shifting to a more asset-light model.• Cyclical Industry Risks: The impact of the freight market’s cyclicality and how businesses handle booms and busts.• Growth Through Expansion: Why expanding the fleet might not be the best strategy in a saturated market.• Logistics and Dispatch: The role of 24/7 dispatch teams and owner-operators in managing the logistics nightmare of trucking.Thanks to this week’s sponsor:Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at [email protected] and mention us ;)Subscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [email protected]

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