Central Penn Transportation Acquired by Titan Transfer

Industry: Dry Van
Business Location: Lancaster, PA
Tenney Group Role: Advisor to Seller

What were the sellers’ motivations in deciding to pursue an exit?

The seller’s children had no interest in assuming ownership of the business someday. Additionally, the current environment was flush with both risk and opportunity, and the seller felt as if with the right guidance, a buyer could capitalize on that opportunity.

What challenges were unique to the sellers as they entered the marketplace?

Despite being on the tail end of COVID-19, the pandemic presented different challenges in the sense of a heightened market. Buyers were wanting to discern what was a COVID bump versus what the company could realistically do on an ongoing base.

How did Tenney Group maneuver around the challenges?

In conjunction with management, Tenney Group worked to craft a narrative that highlighted the consistent performance and accuracy as it related to internal projections/forecasts for prior years. Additionally, the long tenured relationships held by the company led to a sense of comfort from the buyer.

Key Takeaways for Other Business Owners:

Our client in this situation maintained a great culture that led to low owner dependence, low driver turnover and ultimately a very interested buyer. The company also maintained a tight replacement schedule on CapEx, which meant that they weren’t discounted for needing new equipment immediately after close.

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