Selling a Heavy Haul Trucking Company

What a buyer is looking at

A buyer starts with the trailer fleet, because the trailers are the business. A company with a few step decks and flatbeds is one thing. A company with extendable lowboys, removable gooseneck trailers, multi-axle configurations and a couple of jeeps and booster axles for the very heavy loads is another, and it can bid on work that most carriers cannot touch. Buyers will ask what each trailer is rated to carry, how old it is, what it would cost to replace, and how many days a year each one earns money. A specialized trailer that sits in the yard for months is a cost, and a buyer will price it that way.

The second item is the tractors. Heavy haul tractors are expensive, they wear fast, and they are often set up for a specific job, with extra axles, heavy-duty drivelines and pusher or puller configurations. A buyer will look at the age and condition of each unit and ask for maintenance records. They also want to know what is financed, what is leased and what is owned outright, because the equipment debt has to be paid off or assumed at closing.

The third is the book of work. Heavy haul customers tend to be equipment dealers, crane companies, steel and fabrication shops, utilities, construction contractors and manufacturers. Some of those relationships are repeat business with a standing rate sheet. Others are one-off projects that took six weeks of planning and will never recur. A buyer will want to know which is which, and they will want to see how much of the revenue comes from the same handful of names. Our post on customer concentration explains why a buyer reads that list closely.

What makes one carrier worth more than another

Operator skill is the first answer. Moving a wide, tall or heavy load through a city, over a bridge and around a utility line takes judgment that cannot be taught in a week. A carrier with several drivers who have years on specialized equipment, who can walk a route, talk to an escort and make the call to stop, will usually be worth more than a carrier with the same trucks and green drivers. Buyers will ask how long each driver has been there, what loads they are qualified to haul, and whether any of them is likely to leave when the sale is announced.

Permit capability comes next. Every oversize or overweight move needs a permit from each state it crosses, and the routes, the allowed travel hours, the escort requirements and the bridge restrictions differ from one to the next. A company with a permit desk that knows how to get a multi-state move approved quickly has an edge over one that outsources the work or gets it wrong. Buyers will ask who does that work, how it is documented, and whether the knowledge sits with one person. If it does, that person needs to be part of the transition.

Escort and route survey capacity matters too. Some carriers own pilot cars and employ certified escort drivers. Others subcontract. Both can work, though owned escorts give a carrier more control over schedule and margin, and a buyer will ask about the cost of each approach. Route surveys for the very large moves, with a lead vehicle checking clearances ahead of the load, are a skill that buyers value and that is hard to build quickly.

Safety record and insurance history matter more here than in general freight. A heavy haul accident is expensive. Buyers will pull the safety score, the inspection history, the claims record and the loss runs from the insurance carrier. A clean record over several years supports a higher price. A recent serious loss will bring hard questions and may make the deal harder to insure.

The records a buyer will ask for

Expect requests for business tax returns, monthly profit and loss statements, a balance sheet, and revenue broken out by customer and by load type. Buyers want to see revenue per truck, revenue per loaded mile, deadhead, and how much of the income came from permit and escort charges versus line haul. Fuel, tires, repairs and driver pay should be visible as separate lines so a buyer can compare them with other carriers.

They will also ask for the equipment list with serial numbers, titles, lien information, and maintenance logs. Driver files will be requested with license, medical card, training records and endorsements. Safety records, the insurance schedule, the claims history, and the permit files for recent moves round out the package. Our guide on getting your financials ready covers what clean books look like to a buyer. Heavy haul books can get messy because project work is billed in unusual ways, with detention, layovers, escorts and permit fees passed through. A buyer will tie those back to bank deposits, so keep the trail clear.

What has to transfer

Operating authority, insurance and the safety record all sit with the carrier entity. If the sale is an asset sale, the buyer may need to set up its own authority, apply for new insurance and start a new safety history unless the buyer is an existing carrier. That is one reason the structure matters. Our post on asset sales versus stock sales explains the difference, and your attorney will confirm which one fits.

The yard and shop are the next question. Heavy haul companies need space for long trailers and a shop that can handle heavy repairs. Many rent from the owner or a related entity, and a buyer will want a lease with enough term to cover the loan. See the lease is part of the deal for how landlords behave when a tenant changes. Customer agreements, master service contracts and any standing permits or annual oversize permits held by the company will each need a look. Rules vary by state and your attorney confirms what applies.

What tends to sink a sale

The most common problem is a company that depends on the owner to find loads, price jobs and talk to the shipper. If the best customer relationships sit in your phone, a buyer will see that as risk. Our post on owner dependency is worth reading before you list.

Equipment is the second. Specialized trailers and tractors that are older than the books suggest, or that need major work soon, lower the price quickly. Insurance is the third. A buyer cannot close if the carrier will not write the policy, and a poor loss history can stall that.

How to prepare

Start with the permit work, the pricing and the customer relationships. Write down how you quote a heavy move, how you route it, and who you call. Introduce a second person to your best shippers. Get the maintenance records current, sort out equipment titles and liens, and review your claims history with your insurance agent. If you rent your yard from yourself, get a written lease at a market rate.

When you are ready to see what the carrier is worth, selling a heavy haul transport company starts with a valuation built on your own numbers. At Business Advisors of America we then prepare the materials, screen buyers and keep the sale confidential so that your drivers and customers hear it from you.

This article shares our opinion and general information. It is not legal or tax advice. Always speak with a licensed attorney for legal advice, and a qualified tax professional for tax questions, before you act.