Mergers & Acquisitions
Ahern & Associates, Ltd. is a management consulting company specializing in the trucking industry a...
 We do not do contract negotiations
 We do not provide due diligence
 It's important to understand that Ahern & Associa...
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Mergers and Acquisitions

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Ahern & Associates, Ltd. is a management consulting company specializing in the trucking industry and transportation industries. http://ahernandassociates.net

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Mergers and Acquisitions

  1. 1. Mergers & Acquisitions Ahern & Associates, Ltd. is a management consulting company specializing in the trucking industry and transportation industries. 100% of our practice is involved in:  Trucking company mergers  Trucking company acquisitions  Trucking company divestitures  Transportation company mergers  Transportations company acquisitions  Logistics company mergers  Logistics company acquisitions  Improving the operating efficiencies of trucking companies In reference to trucking acquisitions, a Merger or Acquisition often represents a defining moment in a company's development. In spite of the importance of these transactions, the overall track record for business combinations has not been a resounding success. Why do so many highly visible transactions fail to meet their stated objective of increasing shareholder value? How can management institute an acquisition program that avoids most common merger & acquisition mistakes? Along with the reasons for the mediocre record of business combinations, a fairly common mistake is the trucking company buyer failing to establish a compelling strategic basis for making the acquisition. Typically, acquisitions have a significant impact on the overall profitability and financial health of a corporation. Therefore, such transactions deserve the same thoughtful planning and execution as the introduction of a major new product, the building of a new plant, and/or the purchase of a major piece of equipment. Ahern can assist a company in establishing those goals and objectives, so their acquisition will be a success instead of a failure. With a proactive acquisition program, a trucking company is far more likely to avoid costly mistakes and will make business combinations contribute to the creation of shareholder wealth. Such a program, also gives management considerably greater control over the company's destiny. An acquisition program should be viewed as a dynamic process. Objectives and goals can be modified in response to events as to the availability of relevant data, but actions are not dependent on those events. For a program to succeed, it must be proactive, yet under control. A successful acquisition program must also be an integral part of a company's overall strategic plan. Acquisitions can support a number of important strategic goals, including growth, diversification, product or market expansion and access to technology. Most failed acquisitions result from committing opportunity to drive strategy, rather than integrating acquisition decisions into an overall corporate strategy. Due to Ahern's extensive experience, Ahern can assist in establishing a comprehensive acquisition program that will include:  Establishing responsibility at the policy level  Developing an acquisition plan  Defining an acquisition criteria  Identifying potential acquisition candidates and making effective contact with candidates  Establish a written due diligence process, outlining negotiating terms while preserving the benefits identified; to achieve the benefits through an effective post acquisition integration Since Ahern & Associates is not a business broker or Investment Banker
  2. 2.  We do not do contract negotiations  We do not provide due diligence  It's important to understand that Ahern & Associates, Ltd is not a business broker. They are not an investment banker, they do no contract negotiations or due diligence, but they can provide you with a road map on how to set up a team so that you can do it internally. However, what Ahern does, is create a market for a customer that has a specific need. 95% of the trucking companies that Ahern contacts are not in the market to sell.  Ahern eliminates the accountants and the attorneys from the transaction, until such time that a letter of intent is issued  Ahern pre-qualifies, from a pricing standpoint, without committing our customer to any purchase price  If an acquisition candidate believes that their company has substantially more value than Ahern's range of values, that acquisition candidate will never speak to Ahern's customer. The value of Ahern & Associates is most often realized when the deal starts to fall apart. In most trucking acquisitions, the deal falls apart 6 or 7 times before our skilled consultants are able to provide alternatives to the buyer and seller that will solve and achieve both parties' goals and objectives. All of the above are integral parts of a successful acquisition program. Considerations when looking at an acquisition: 1. Reason for the acquisition: o To increase revenue and bring an economy of scale to increase profits o Fill backhauls to replace existing low paying freight o Increase driver base 2. Revenue size 3. Location 4. Improve traffic lanes/patterns 5. Additional infrastructure. Do you want management to stay? 6. Do you want company drivers or owner/operators? 7. Do you want to buy or lease equipment? 8. Do you prefer a certain type of equipment? 9. Do you want a profitable company or one that is losing money that can bring you an economy scale and possibly acquire for less money? 10. Do you want to lease or buy the terminal of the selling company? 11. 11. What type of carrier are you looking for? Flatbed, van, reefer, brokerage, logistics, etc. For further information, please feel free to review Ahern's actual case studies in reference to the transaction process. If you have additional questions, please do not hesitate to Contact Us.

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