Freight Rite Acquired by US Pack, NewSpring Capital

Industry: Final Mile
Business Location: Toledo, OH
Tenney Group Role: Advisor to Seller ($30M Final Mile Business)

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

The seller had built and sold other companies previously, and saw an opportune time to enter the marketplace. Beyond that, the seller had a desire to pursue another industry with his next venture. Collectively, with the ever-changing landscape of final mile, he retained Tenney Group to assist him in the sale process.

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

The seller had exposure to and concentration with a client that was in the middle of a “shake up” in how they awarded bids for their business. That, paired with the fact that he had long term leases in markets that presented vulnerabilities, highlighted some of the most unique challenges.

How did Tenney Group maneuver around the challenges?

First and foremost, the seller understood that the challenges highlighted above offered risks to buyers that could not be simply disregarded in the deal process. Tenney Group strategically sought out buyers for Freight Rite that could alleviate both risks, ultimately manifesting itself in the form of buyers who had the proper capital and flexibility to maximize the relationships Freight Rite had built with its customers, even amidst “shake ups.”

Key Takeaways for Other Business Owners:

Properly timing a business exit is never a guaranteed easy task to navigate. This was especially the case given that COVID-19 appeared in the midst of Due Diligence. The importance of hiring an experienced transaction advisory firm makes its point here. In times where business operations are seemingly turned upside down, it’s important to have someone on “your team” that can navigate the obstacles that arise from a sale process while the business owners can focus on maintaining peak operations.


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