Question: Has anyone on here ever purchased a trucking or logistics company?
Currently in conversations with one and would love to understand:
1)Union Challenges - If you had challenges with union, how was the withdrawal liability addressed, did you renegotiate the CBA?
2)Asset vs Stock sale: I get the difference, but wanted to know the best path for trucking. Specifically, you would need to get a new DOT number, your insurance goes up, may risk disruption in service and inspections, which could trigger additional expenses. How much of a headache is this?
3)Net Working Capital - tractors and tailers are not cheap, how did you come up with the right NWC knowing that you will not be able to take out loans the next 2 years. Is there a standard formula that is industry accepted?
4)What multiple did you end up paying on EBITDA?
5)Any other warts that were uncovered that you wish you thought of prior to purchase?
Would love to chat thru these. Thanks in advance.
Trucking Company Acquisition Questions
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by a searcher from The University of Chicago - Booth School of Business
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