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Casestudies  Casestudies Home Mergers Acquisitions Operational Review 1 Operational Review 2 Operational Review 3

Operational Review Case Study #3

Ahern recently encountered another situation with a small trucking company. The carrier was:

• Approximately $11.0 million of revenue;
• The owner had numerous heart attacks;
• Driver turn over ratio was excessive;
• Company could not cash flow the debt service;
• They had 25% empty mile ratio;
• They could not service their existing debt;

In this particular situation not only were operational changes necessary, but also people changes were necessary. Again Ahern did many of the above referenced items and in addition located:

• An Operating President;
• Assisted in bringing in a new Chief Financial Officer;
• Assisted in restructuring their debt;

Today this company is:

1. Profitable
2. Is cash flowing their debt service

This was a small family operation with $5 million dollars of annual revenue.

• The client had many family members into the company.
• The client had to infuse $1 million dollars to keep the company operating
• This was a combination:
  
  - Truckload;
  - LTL operation;

Ahern was able to:

• "Cash Flow" the company.
• Reduce operational cost by approximately $800,000 dollars.
• Improve tractor/trailer utilization
• Increase "running rate"

 

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