Ahern & Associates Releases Much-Anticipated List of 4th Quarter Acquisition Targets

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The industry-leading transportation consulting firm announces collection of targets for the final leg of 2014

Ahern and Associates: Transportation, Trucking and Logistics Consultation Specialists

Ahern and Associates: Transportation, Trucking and Logistics Consultation Specialists

2014 has been a very profitable year for many carriers, albeit also a challenging one.

With 2014 soon drawing to a close, trucking and transportation consulting firm Ahern & Associates has released its latest collection of acquisition targets for the year. Each quarter, CEO and Founder Andy Ahern provides the needs of Ahern’s clients so that readers of The Ahern Advisory can determine if they themselves are ready to begin their own process. 2014 has been a very profitable year for many carriers, albeit also a challenging one. “The first three quarters of 2014 have been very active for my firm,” says Andy Ahern. “As such, our clients have advised us of their needs through December 31st of 2014, as well as the first quarter of 2015.” In each instance, Ahern & Associates has been retained for the following searches:

1.    This is a privately-held company that generates over $750M of annual revenue. The company has been in business for approximately 65 years. It is a leader in supply chain management solutions and has a diversified list of customers including electric power generation companies, coal production, oil refining, railroad, chemical and other industries. The client has over 200 locations, more than 3,000 employees, and is growing. This client is looking to obtain freight brokers and logistics companies that focus on trucking, rail and trans-loading expertise. The client focuses on agriculture, construction, energy, manufacturing, mining and oil refining, and is looking to acquire companies with revenues between $20M-$50M of annual revenue.

2.    Client 2 has been in business since 1949 and is primarily a provider of bulk aggregate materials, utilizing dumps, and pneumatics. The client focuses on food, energy, chemicals, manufacturing, and construction and is interested in expanding their operating footprint. The customer profile consists of Fortune 1,000 companies, comprising 80% of its revenue base. The client has multiple distribution centers throughout the U.S., as well as multiple-year contracts and long dedicated contracts for services; CSA compliance is a must. This client is primarily looking for opportunities in the Midwest.

3.    Client 3 is a very successful private equity fund and is looking to grow its specialized heavy haul division. The client is looking for niche companies in specific geographic areas; revenue must be between $20M-$100M of annual revenue. The company must be profitable and management must be willing to stay and continue to grow the business.

4.    This next client has established a platform company. They are looking to acquire carriers that are specialized bulk haulers within the 11 western states. The client wants management to stay and continue to operate the business, and will pay a multiple of EBITDA. A normal transaction can be closed within 90 days, and the client is looking to acquire companies with revenues between $15M and $50M annually.

5.    Client 5 is a repeat customer that Ahern has done a substantial amount of work with for many years. It is one of the top flatbed carriers in the country, and it wants to continue to expand its operating footprint. The target companies it is looking at are $10M-$50M annual revenue companies. The client is looking primarily for owner/operator flatbed carriers. The company can be profitable or unprofitable, and management must be willing to stay.

6.    This client is a well-established trucking, over-the-road operation that operates primarily vans and is looking to expand its operating footprint throughout the United States. The company currently operates approximately 550 tractors and is willing to review companies that are marginally profitable. They want to acquire the assets of the business and pay for the customer base, can move quickly, and want management to continue to stay and assist in growing the business.

7.    Client 7 is a continuing customer of Ahern & Associates that is always looking for new opportunities. The client likes to acquire trucking and logistics companies with annual revenues in excess of $75M-$250M. The client acquires the business and establishes it as a platform business, and then continues to grow the business. Willing to pay a multiple of EBIT or EBITDA, the client is also willing to acquire a percentage of the stock in the business, grow it, provide financial strength as well as management strength. The client will allow the seller to retain some ownership in the business.

8.    This client is a well-recognized company with revenues that exceed $1 billion annually. Looking to establish ownership of companies with revenues of $150M and over, the client is willing to acquire 50%-60% of the business or more and establish a formula so when the owner is ready to exit, they are willing to acquire the balance at a predetermined formula. The client will consider van, OTR carriers, flatbed and refrigerated carriers, and will look at asset or non-asset-based businesses, but the minimum threshold is $150M of revenue and over.

9.    Client 9 is a well-established trucking company that has been in business for approximately 16 years, and currently operates 500 trucks. It is looking for a truckload van carrier carrier that operates east of the Mississippi. Primary lanes include Indiana, Kentucky, Illinois, Louisiana, West Virginia, Georgia and Pennsylvania. The average length of haul should be 300-400 miles. This client has an OTR division that has secured 3-year contracts, tied directly to the automotive industry. The client is looking to acquire companies that have 50-150 trucks, they can close quickly, and an ideal location would be in the state of Missouri.

10.    This client is a very well-respected freight broker and logistics company that has been a client of Ahern & Associates for some time. The client is looking to acquire freight brokers with revenues of $30M-$200M. The company must be profitable and management must be willing to stay. They are willing to pay a multiple of EBITDA and are involved in TL, LTL, intermodal, expedited flatbed, and refrigerated. This client can move quickly. Any freight broker or 3PL provider that is looking for a strong financial partner would find this client to be a good fit.

Readers with knowledge of suitable companies that may be a fit with any of these clients are asked to contact Andy Ahern at (602)242-1030 or email Andy at ahern@ahern-ltd.com.


About Ahern & Associates, Ltd.

Ahern and Associates is North America’s leading trucking and transportation management consulting firm. The skilled consultants at Ahern and Associates specialize in mergers and acquisitions of trucking and logistics companies as well as the restructuring and evaluation of existing carriers that seek to increase operating efficiency and improve profitability. Since 1987, Ahern and Associates has aided hundreds of buyers in the acquisition of trucking and logistics companies throughout the U.S. and Canada as well as assisting many transportation and logistics companies in reducing their overall operating costs and increasing their profitability.

For more information, please call 602-242-1030 or visit http://www.ahern-ltd.com.

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