I factor a lot of trucking companies and there are 3 types of companies in the industry:

- brokers: typically don't own trucks. They arrange loads for carriers. These guys typically operate with tops 15% margins. They can open and shut down on a fly since they don't have any skin in the game other than a computer and a phone. Any broker with less than 2 years in operations is high risk.

- carriers: carriers can be broken down into three categories:

1. Small fleet: 1-5 trucks. These guys burn a truck, file a claim with their insurance carrier and close the company and then run and get a new DOT number under a new entity just as fast as changing an underwear.

2. Medium fleet: 5-20 this is where the money is as it's harder for a company to change the entire fleet to another company.

3. Large fleet 20-up: these are home runs, if you fund them, but these are typically ABL prospects.

- the last one are carriers who operate as brokers: they use other people's trucks, however, the trucks run under the carrier's authority.

Happy to share some qualifying questions I use to help you guys determine which companies are good to pursue. Just let me know.

Hope this helps.