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Logistics for Rail Freight and Bulk Transfer – 4 Locations

Supporting a very diversified customer & industry base in Pennsylvania & New York!

CASH FLOW
$1,428,816

Specifications

  • Price
    $7,950,000

  • Revenue
    $4,490,022

  • Cash Flow
    $1,428,816

  • Location
    Pennsylvania & New York: 4 Locations

  • Service Area
    Mid-Atlantic to Northeast U.S.

  • Profit Margin
    32%

  • Employees
    36: Owner + 1 Operations Manager/Communications Director, 1 VP Business Development, 1 Controller, 1 Accounting/HR, 1 Safety Officer/Project Oversight, plus a number of day managers, night managers, mechanics, transload operators, crane operators, truck drivers, and clerical; All cross-trained to work at each location

  • Reason for Sale
    Retirement / Age

  • Equipment
    $2,220,404

 

This rail freight and bulk transfer logistics business has 4 locations in Pennsylvania & New York supporting a very diversified customer & industry base!  This business has a 32% profit margin, over $2M in assets, and been deemed an essential business during COVID. Serving the Mid-Atlantic to Northeast region of the U.S. for over 20 years, this family of companies offers railroad terminal operation for inbound & outbound freight clients, clerical & inspection work for inbound & outbound rail freight, equipment maintenance & repair, and transloading of commodities such as frac sand, swamp mats, propane, residual waste, hazmat materials, and agricultural products. The diverse customer base consists of transportation providers, oil & gas companies, agriculture industry clients, PennDOT, the energy sector, and plastics & lumber clients. Everyone on the team of 36 highly experienced staff is cross-trained and can work at each separate entity within this company. The owner is retired and has an adult daughter who will stay on for 5+ years and continue as General Manager.

Corporate headquarters are in Scranton; this entity supports the accounting/bookkeeping, insurance needs, and HR. There is an intermodal terminal operations company also located in Pennsylvania, and a bulk rail facility in New York that is a short line railroad and is project-oriented, handling everything from mats for pipelines, re-bar for road construction, and utility poles for the power industry. The fourth entity is a rail facility in Pennsylvania with a certified truck scale and multiple conveyers. The team is comprised of 1 Operations Manager/Communications Director, 1 VP of Business Development, 1 Controller, 1 Accounting/HR, 1 Safety Officer/Project Oversight, plus a number of day managers, night managers, mechanics, transload operators, crane operators, truck drivers, and clerical staff. Assets include 6 sand trans loaders/conveyers, 4 hostler trucks, 2 overhead gantry cranes, a vacuum lift, and a variety of heavy lifting equipment & heavy construction pieces.

Substantial growth is inevitable for this family of companies. Expanding their service area further south, adding another fully functional terminal, increasing commodities, and looking further into increasing residual waste removal services would be tremendous and diversified.

 

Business Highlights

  • Year Established: 20+ years
  • Location:  Pennsylvania & New York: 4 Locations
  • Service Area: Mid-Atlantic to Northeast U.S.
  • Services: Railroad terminal operation for inbound/outbound freight clients, clerical & inspection work for inbound & outbound rail freight, equipment maintenance & repair, transloading of frac sand, swamp mats, propane, residual waste, hazmat materials, agricultural products, etc.
  • Clients: Transportation providers, oil & gas companies,  agriculture industry, PennDOT, energy sector, plastics & lumber clients
  • Reason for Selling: Retirement / Age
  • Personnel: 36: Owner + 1 Operations Manager/Communications Director, 1 VP Business Development, 1 Controller, 1 Accounting/HR, 1 Safety Officer/Project Oversight, plus a number of day managers, night managers, mechanics, transload operators, crane operators, truck drivers, and clerical; All cross-trained to work at each location
  • Seller Training Period: 1 year if desired; has adult daughter who will stay on 5+ years and continue as GM
  • Growth Opportunities: Expand service area, add another terminal, increase commodities, look further into increasing residual waste removal services
  • Current Owner’s Responsibilities: Retired, Management in place

Financial Highlights

  • List Price: $7,950,000
  • Gross Sales:
    • 2020: $4,490,022
  • Cash Flow:
    • 2020: $1,428,816
Assets Included in Purchase*: $2M+
  • Equipment/Vehicles: $2,220,404: 6 sand trans loaders/conveyers, 4 hostler trucks, 2 overhead gantry cranes, vacuum lift, variety of heavy lifting equipment & heavy construction pieces
  • Inventory: $59,873
  • A/R: $205,038 

*amounts may vary, assets may be depreciated, replacement cost, or fair market value 

Cash Flow Analysis

Description of Financial StatementP&L Statement
Combined
Tax Return
Combined
Tax Return
Combined
Notes
202020192018
GROSS SALES$4,490,022$5,361,843$6,862,549
Net Income Shown on Financial Statement$130,410$560,822$316,293
ADDBACKS
Compensation to Owner$350,000$234,900$227,900
11% Tax on total W2 Salaries$38,500$25,839$25,069
Depreciation$172,057$67,198$457,913
Interest$68,239$88,695$124,821
Pension$7,861$7,861$7,8161/2 Owner in Headquarters
Life & Health Insurance$24,000$24,000$24,000$2,000/month in Headquarters
Management Fee$500,625$546,000$637,845Paid Internally - Phantom Expense 75%
Travel$29,771$5,351$31,15250% Personal from all entities
Meals & Entertainment$6,467$5,518$9,182
Amortization$2,642$334$0
Equipment Rental$97,124$148,886$117,71495% Internal - Non-Onward Going
Contributions/Donations$1,120$0$0
TOTAL ADDBACKS$1,298,406$1,154,582$1,663,412
Seller's Cash Flow = Total Addbacks + Net Income$1,428,816$1,715,404$1,979,705
Profit Margin31.82 %31.99 %28.85 %
  • Combined Profit Margin: 32%

Clients

  • Transportation Providers
  • Oil & gas companies
  • Agriculture Industry
  • PennDOT
  • Energy sector
  • Plastics & lumber clients

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Lift operations
  • In/Out gate equipment processes and inspections
  • Operations & maintenance of various intermodal overhead and side lift equipment
  • Ownership & operations of hostler equipment & services
  • Various additional customized services such as reefer refueling, equipment inspections, maintenance & repairs, etc.
  • Complete turnkey facility operations

Personnel

  • 1 Owner: general oversight, building professional relationships
  • 1 Operations Manager/Communications Director
  • 1 VP of Business Development
  • 1 Controller
  • 1 Accounting/HR
  • 1 Safety Officer/Project Oversight
  • Several day managers, night managers, mechanics, transload operators, crane operators, truck drivers, and clerical staff

All employees are cross trained to work at each location.

Growth Opportunities

  • Expand service area
  • Look further into increasing residual waste removal services
  • Participate in additional commodities
  • Win new terminal contracts
  • Acquire other operators
  • Expand operations on the bulk side to start additional terminals in areas not well served, particularly on short lines

Purchase Price:

$7,950,000

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OR
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Years
%

Bank Loan Needed: $

Years
%
$
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Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2 Yr. Avg. (19-20)
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2 Yr. Avg. (19-20)
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.