THE Business for Sale Marketplace

THE COMPANY
Road Runner Shuttle Service opened in Rexburg in December 2005 with the goal of providing a reliable van service for a family member. The business and demand have been expanded with six vans and a compact economy car. The Company has eight professional employees who are stable and focused on providing the best service for their clients. Eighty percent (80%) of the routes are in Fremont and Madison Counties but clients have requested expanded routes to Mud Lake and Idaho Falls. The original goal for this family-operated business was to have two to three vans to provide service to special needs clients. The community has continued to challenge Road Runner to expand routes and increase the number of vans to meet the demand. Road Runner is a small, stand alone service provider but could easily be incorporated into an existing company to expand routes and market coverage. The company vans are serviced by a third party every 3,000 miles and at this time there is not any deferred maintenance.

THE LOCATION
Road Runner is a Madison County core company that operates from a home-based office. The company employs seven drivers, an office staff assistant (scheduling), and a dispatcher. The company has Medicaid approval with EDS application and contracts with two school districts in the area. All drivers have provided background checks but are not required to have CDL certification. Road Runner works very well with Health and Welfare meeting or exceeding the requirements of the client base; all the routes are based on the Health and Welfare Rate. The company also has offered personal van service. Rexburg, Idaho continues to be one of East Idaho’s fastest growing communities and now that BYU–Idaho is expanding enrollment to 30,000 students, the community will only continue to grow.

THE CUSTOMER
Road Runner is a compassionate company that strives to provide the best service for the specific special needs client or the service provider that cares and treats the client. The client base is a mix of adults to children that require special needs care. Road Runner has been very cautious in controlling their growth and want to be small enough to care for clients but large enough to be dependable and professional.

THE REASON FOR SELLING
The owner is very proud of her company and has mixed emotions about selling. She is involved in the billing and assists with the route development. The company is operated passively by the owner; the dispatcher and van operators are the core of the business. Gross sales over the last three years have continued to increase, in 2008 to almost $200,000. The recast of net operating profit for 2008 is $50,000. The owner is selling the company based on a 1.5 multiple of profit and asset value for the vans. The owner will provide a training outline and introduction of all the providers in the market area. In addition, the offering price is for a non-compete agreement.

THE IDEAL BUYER
A buyer will need to meet the requirements of Health and welfare. The route industry has been under review for consolidation but the Broker review is that the routes that are in place will continue. Road Runner is not selling a client base or representing that the provider base will stay in place. Road Runner is selling the asset base of six vans with the contact information on each client and service provider. For the past five years or so Road Runner has established a very strong and creditable name in the market area of providing professional and caring care for their clients.