Investor Presentaiton
A. Industry Sectors
There are a variety
of industry sectors that
may interest Investors.
These sectors include:
■ Air freight
Cold chain (refrigerated)
■Customs broker
■General commodities
Heavy lift
Inland barge
Intermodal
■Port management
Project cargo
■Sea freight
■Supply chain management
Third party logistics
■Trucking
Warehousing
A US transportation
and logistics company
could encompass several
of these sectors or just one,
depending on the company's
size and complexity.
B. Asset-Based or Non-Asset Based
The next way to characterize a US transportation and logistics company
is by whether it is "asset-based" or "non-asset based."
Asset-based: has equipment, trucks, vessels, aircraft, rail cars, terminals
and warehouses, perhaps other real estate.
■ Non-asset based: includes for example, third party logistics companies,
air or surface freight forwarders, intermodal marketing companies,
domestic truck brokers, or non-vessel-operating common carriers
(NVOCCS), which have few or no hard assets.
An asset-based company is often considered more substantial. If
an Investor enters into a venture with an asset-based company, the
Investor must conduct due diligence on the condition of the assets. If
the Investor will obtain an ownership interest in the US company, it must
determine whether the assets are owned or leased, and whether they are
used as security for loans to the operating company. If the Investor will
be an owner of an asset-based joint venture, the Investor will be required
to maintain and upgrade the assets. Additionally, potential liability is
greater in an asset-based company. A company operating transportation
equipment can face serious third party liability if the human operators or
the equipment causes harm to other parties.
A non-asset based company's main value is often based on its relationships,
clients, contracts, and goodwill, as well as information technology tailored
to its customer base. An Investor needs to conduct due diligence on the
financial health of those intangible assets. The non-asset based companies
are often referred to as "third-party logistics companies" or "3PLs."
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