In this week’s Buy Side Breakdown, Alfie is joined by colleague Toby Johnson to assess a logistics and transport company currently listed for sale in North West England.
The business has three distinct revenue streams: professional driver training, haulage operations, and pallet storage; with a reported £2.5m turnover and £700k gross profit. The asking price is £1m plus fleet, plant, and equipment, raising questions about valuation, cash flow, and deal structure.
Topics covered include:
How to interpret gross vs. net profit in listings
Why excluding assets from the asking price raises red flags
The impact of industry dynamics: driver shortages, turnover, and mandatory training
Value (and risks) of diversification across training, haulage, and warehousing
Family-run businesses, succession, and owner-dependence
Possible deal structures: asset-backed lending, NAV-based deals, and earnouts
Operational questions: staff retention, accreditations, systems, and scalability
Expansion potential in training (digitisation, college partnerships, repeat certifications)
Ultimately, both Alfie and Toby conclude this listing raises more questions than answers, band without clearer financials, they’d call it a pass.
Listing link: https://uk.businessesforsale.com/uk/driver-training-transport-haulage-storage-warehousing-for-sale.aspx
⏱ Timestamps
[00:12] Introduction & Toby joins as guest host
[01:28] Overview of the business: driver training, haulage, storage
[02:14] Asking price, turnover and gross profit headline numbers
[03:29] Industry averages, gross vs. net profit questions
[04:08] Assets excluded from asking price — a red flag?
[05:52] Revenue mix: training vs. haulage vs. storage
[07:05] Haulage accounts for £1.8m turnover; is training/storage meaningful?
[08:18] UK driver shortage, COVID impact & training school value
[09:22] Driver turnover, wages and industry challenges
[11:12] Repeat training requirements & recurring revenue opportunity
[12:22] Staff, capacity, and scalability of the training school
[13:38] Full complement of staff, what does that mean?
[14:38] Family-run, 15-year track record & industry accreditations
[15:36] Staff retention, owner knowledge, and succession risks
[17:52] Deal structure ideas: NAV, asset-backed lending, goodwill premium
[20:25] Overheads, staff, and true net profit questions
[21:20] Multiples, asset values, and valuation concerns
[22:25] Back office systems, regulatory complexity, and efficiency
[23:34] Expansion opportunities in training and digitisation
[24:36] Family business dynamics & local goodwill risks
[25:27] Why no family succession? Red flag on true profitability
[27:02] Who this business might suit (roll-ups, industry insiders)
[27:32] Scalability questions - training utilisation & warehousing
[28:23] Conclusion - Buy or Pass?
[29:56] Toby: Pass; Alfie: Pass (pending more info)
[31:18] Final thoughts, community call, and event plug
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