Transportation and Logistics
100+ Businesses SOLD!
Transportation and logistics are two of the most critical industries in Canada. With an increasingly globalized economy creating more complex supply chains and e-commerce generating more door-to-door deliveries, experts in transportation and logistics are in high demand.
Businesses are interested in acquiring transportation and logistics companies with experience, a strong client base, and unique specializations. Jason Brice can help you sell your business to interested buyers.
Overview of the Transportation and Logistics Industry
Transportation and logistics businesses play a vital role in Canada’s economy; an estimated 3.94% of Canada’s GDP is derived from the transport and warehousing sector alone.
Both transportation and logistics affect every business in the country. Businesses look for logistics services to make their supply chain more predictable. Profitable and reliable transportation businesses ensure customers receive their products quickly and efficiently.
Businesses in and around Vancouver are particularly well-positioned in Canada’s ever-growing transportation and logistics sector. As the biggest port city in Canada and the most diversified port in North America, there are opportunities here that simply don’t exist in other regions of the country.
This means that transportation and logistics businesses in Vancouver may fetch a higher asking price than those in other regions.
E-commerce growth has, undoubtedly, been one of the biggest drivers in the growth of the transportation and logistics industry. Pre-pandemic, e-commerce made up 3.9% of total retail sales in Canada, but in 2022, that number was 6.2%.
Fulfillment in e-commerce and fulfillment in traditional retail are two completely different beasts; transportation services are needed to expedite packages to consumers, as well as fulfill last-mile delivery, a particularly challenging problem in the sparsely populated areas of the country.
Logistics services are also needed in order to help e-commerce businesses grow, from tightening their supply chain to helping them understand how to work with transportation companies to fulfill shipments to customers around the globe.
Global Supply Chains
E-commerce businesses have potential buyers around the world; in the same vein, businesses can procure materials, parts, equipment, and other goods from almost anywhere. Globalization and global supply chains have presented a number of challenges for business owners, challenges that can help both transportation and logistics businesses turn a profit.
Whether you own a trucking company that can help move goods from a port to a transportation hub or you can offer last-mile fulfillment, your business has an important place in the current economy. This goes double for anyone who owns a logistics business—consulting with businesses to help them find the ideal method of transporting goods or procuring supplies can help them focus on their core competencies while shoring up their bottom line.
Why Work With a Broker To Sell Your Transportation and Logistics Company?
In-Depth Industry Knowledge
To sell your logistics or transportation business successfully, you need more than just knowledge of transportation and logistics; you must understand business sales.
A business broker with experience in the industry will help you understand:
How to valuate your business
The best times to sell
The changes you can make to sell your business for more profit
Jason Brice has experience selling businesses in the transportation and logistics industry in both Canada and the United States. Two of his recent sales include:
Groundstar Express Ltd. (Surrey, BC)
Allied Delivery Services Inc. (San Jose, CA)
As a brokerage, we’re proud of both of these sales; in each sale, we were able to leverage the unique position of each business in the market to arrange for an excellent selling price.
Extensive Network of Potential Buyers
Whether you’re in logistics, transportation, or both, you understand better that being well-connected is one of the keys to success for any business.
Business brokers find buyers through a variety of different means, be they marketing or even working with other business brokers. For Jason Brice, a large number of business sales come from potential buyers he’s worked with in the past. 25% of his sales come from connections he’s made previously.
There are a lot of advantages to making a sale to a buyer you’ve encountered previously. You have prior knowledge of their finances and reputation; you’re not marketing publicly, which makes it easier to avoid disclosing any identifiable information about the business being sold; the sales process is often expedited; the list of advantages goes on.
Negotiations and Structuring the Deal
Negotiating, structuring the deal, and closing the deal are three of the most complicated elements of any business sale. An experienced logistics and transportation business broker will help you with all three processes.
Having your business broker negotiate on your behalf means you’re playing with a better hand; your broker will be able to calmly assess all offers, with the experience to know how likely financing is to come through, whether or not the offer is reasonable, and what counter-offers can be made.
Structuring the deal means deciding, among other things:
Between asset purchase and stock purchase
How much vendor take-back (VTB) will be included
Whether or not earnout will be included
Closing the deal is a team effort, involving accountants, lawyers, and other parties. Your business broker will help coordinate all of these professionals on your behalf.
Considering Selling Your Transportation Business? Contact Jason Brice Today!
Are you in the transportation and logistics industry? Jason Brice will connect you to potential buyers and help you sell your business. With years of experience in the industry, his services will help you with business valuation, marketing, structuring and closing the deal, and more.
Every sale starts with a free consultation; a simple phone call can help you understand all of the benefits that Jason Brice can bring to the business sale process. Give him a call today!