Sometimes it's easier if you plan ahead. Manitoulin opened 3 terminals in Eastern Ontario last year which is a little unusual since their normal path to growth has been through acquisition. Meyers closes their LTL division and then sells their customer list to Manitoulin within a week of closing. A customer list is certainly not going to get you anywhere near the price of a "package deal" business, but if you are not cash distressed and can afford to wait, you sell your terminals, trucks and other assets separately and you will get a lot more then accepting a low number from one of the stalkers for the whole kit and caboodle. Meyers comes out ahead eventually with a bigger return and is still in business concentrating on the divisions that are more profitable. Manitoulin avoids the union since they didn't buy the company and will retain a bigger portion of the freight since a big chunk originated through their customers in the first place. Just a thought.
Meyers Transport Closing
- Thread starter lowmiler88
- Start date
I understand that Manitoulin is "sharing" space, not their own terminals. Is manitoulin "honoring" Meyers rates? It will all play out, but I suspect with the players it is somewhat "political". The savy clients are weighing options. Of which I am glad they have.
Shakey
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You are right. We found that out. Good for them. We all want to be in business for the long term.
cheers
Regardless of whether they are sharing space, renting, leasing, or own they are moving the freight themselves. They consider them terminals since they have employees who work there. They have gotten to where they are by not making quick moves and studying the market. "Sharing space" would be a smart move until they know how many customers on the list stick with them. If enough do you can bet they will adding bricks and mortar of their own, if not enough do then they really haven't had to invest much.