Acquire a majority stake in a high-growth Transport Business For Sale, a technology-driven last-mile logistics company poised for continued expansion. This is a unique opportunity to secure a 57% shareholding with significant control, including 4 out of 7 board seats, for an initial commitment starting at just $520K. The valuation for this substantial stake ranges from $4.7M to $6.5M, presenting a compelling investment in a rapidly evolving market.
This established transport business operates a cutting-edge Delivery Management Platform, connecting businesses with a vast network of over half a million drivers for efficient last-mile delivery solutions. Functioning as a vital link in the supply chain, similar to Uber but tailored for business deliveries, the company offers both a robust operational platform and a SaaS-based model for broader market reach.
Key Investment Highlights
- Majority Stake Acquisition: Secure a 57% stake and majority board control with a minimum $4.7M valuation.
- Low Initial Investment: Upfront commitment of only $520K required.
- High-Growth Potential: Company achieved over $8M in revenue in 2023, with 75% year-over-year growth.
- Proven Profitability: Track record of sustained profitability with ambitious targets for future EBITDA.
- Scalable Technology Platform: Proprietary technology serving both operational needs and SaaS market opportunities.
- Experienced Management: Capable management team committed to staying post-acquisition to ensure smooth transition and continued growth.
- Strong Market Position: Operating in the rapidly expanding US Courier and Local Delivery Services market, projected for substantial future growth.
Company Overview
Established nearly a decade ago and headquartered in Delaware, this accredited transport business has built a strong reputation within the logistics industry. Holding accreditation from the Better Business Bureau (BBB) and memberships with the Customized Logistics and Delivery Association (CLDA) and Transportation Intermediaries Association (TIA), the company demonstrates its commitment to industry standards and best practices. In 2023, the company’s revenue exceeded $8 million, marking a significant 75% increase from 2022, showcasing its rapid growth trajectory. The company is targeting an adjusted EBITDA of $1.2M by 2024, reflecting its strong financial outlook.
Services and Solutions
The company’s core offering is a sophisticated logistics mobile application, revolutionizing last-mile delivery. This platform provides businesses and consumers with access to a wide network of local drivers, enabling same-day deliveries at competitive prices. This innovative approach offers a significant advantage over traditional delivery models, providing flexibility and efficiency for its clientele.
Strong Client Base
The transport business boasts a robust B2B client base, primarily serving 5 key customers in the auto and e-commerce sectors. These established relationships extend across multiple locations, embedding the company’s solution as mission-critical for its clients and creating high barriers to entry for competitors. Notably, approximately 90% of recurring revenue is derived from a single major client, a relationship spanning almost a decade and promising continued stable revenue streams. The recent addition of a new client in the same industry further diversifies revenue and sets the stage for continued expansion.
Management and Operations
A key asset of this transport business is its experienced and dedicated management team, committed to remaining with the company after acquisition. This ensures operational continuity and leverages existing expertise to drive future growth. Furthermore, the company benefits from the backing of institutional investors, providing a solid foundation for ongoing development and expansion.
Financial Performance and Projections
The company’s financial performance is compelling, with January 2024 run-rate revenues and EBITDA reaching approximately $11M and $941K respectively. The onboarding of a significant new client in February 2024 is projected to add between $1.5M to $2M in annual revenue. With continued client acquisition anticipated, the company is well-positioned to exceed $12M in revenues, maintaining a healthy EBITDA margin of approximately 10%.
Market Opportunity
The US Courier and local delivery services market is a massive and expanding sector, exceeding $165 billion in revenue in 2023. This market has experienced a Compound Annual Growth Rate (CAGR) of 5.9% from 2018 to 2023*. Looking forward, the Global Logistics Management Market is projected for even stronger growth, with a forecasted 7-year CAGR of 8.5% from 2024 to 2031**. This robust market growth provides a strong tailwind for this transport business and its future prospects.
Reason for Sale
The founder of this successful transport business is seeking to transition towards retirement over the next 6-7 years and is offering a majority stake to facilitate this process. The founder is seeking an upfront payment and is open to an Earn Out arrangement, incentivizing continued support for business growth and a smooth handover. This presents an ideal scenario for a buyer to acquire a thriving business with founder support during the transition period.
This transport business for sale represents a rare opportunity to acquire a market-leading last-mile logistics platform with substantial growth potential in a booming industry. Contact us today to explore this exciting investment prospect.
*Source: IBIS World [ibisworld.com]
**Source: Cognitive Market Research
