Small-Fleet Trucking Company
Situated in northwest Georgia is a well-established trucking company with a 15-year history of long and short-haul transportation of bulk materials including hazardous and non-hazardous liquid products, animal feed and livestock. Beginning at the end of 2015, over several months the company suffered a steady stream of setbacks that included declines in business from the destruction of a core customer’s facilities, untimely absorption of debt from the acquisition of a distressed company owned by a family member, family health issues, employee behavior issues leading to a compromised reputation, and overall increases in non-revenue generating costs. As the business continued to absorb losses, liens were taken on fixed assets, and to try to help capitalize the company, financing from a primary lender was executed which quickly evolved into an over-advancement the current assets could not support.
Fortis Business Advisors was referred into the trucking company by their financial institution. The primary objective was to stabilize the operation employing comprehensive turnaround initiatives, including 13-week cash flow statements, comparative operating statements, break-even analysis, and cost & profit distribution analysis. While gaining a better understanding of the financial condition of the business was underway, Fortis and the financial institution closely monitored cash flow to ensure the overall debt position had peaked and was improving, a new CPA firm was brought in to perfect the financials, and a triaged payment structure was implemented for secured creditors. This helped free-up the owner to focus on sales and service, employ exceptional drivers and a dispatcher to balance logistics, designate staff to manage invoicing and payables, sell non-revenue generating assets off of the yard, develop a high-margin brokerage business, and double-shift trucks for maximum revenue per mile.
Business Performance Optimized