DealGen Partners

We are going to break down another investment opportunity that DealGen Partners uncovered this week... Deal:? Arizona Logistics Revenue:? $13,000,000 EBITA: $5,000,000 Asking Price $25,000,000 Company Description: Arizona Logistics is a Phoenix-based 3PL (third-party logistics) company offering services in warehousing, co-packing, and transportation, catering to industries such as food & beverage, industrial, and retail. Founded in 2013, it has grown significantly, expanding both its service offerings and client base. The company differentiates itself through proprietary technology, multi-year customer contracts, and a flexible, scalable operational structure. Financially, The Company has maintained strong EBITDA margins around 41%. The owner is selling the business primarily for financial planning and estate diversification reasons. My 2 Cents: The Company is a well-run, niche 3PL player with a strong foundation in Arizona’s growing logistics market.? Margins are good, and its proximity to major markets like California and Mexico make it attractive. 40%+ profitability is very nice, and their investment into tech seems to be paying dividends as they are able to do more with less overhead since making this investment. Some concerns here are customer concentration and growth constraints.? Businesses like this can lose one contract and their EBITA can drop substantially.? This makes them hard to finance, because banks understand the risk.? Also, being a warehousing business, growth potential is limited to the size of your facility, so there may not be a ton of room to expand. With proper investment and a plan to expand capacity and secure additional long-term contracts, this business could continue to scale profitably. However, like any business in the logistics space, it will need to carefully manage its customer concentration risk and adapt to fluctuations in labor and capacity needs. Questions:? Revenue and Client Diversification: What is the current dependency on key clients, and how diverse is The Company’s client base in terms of industry and geographic distribution? Growth Opportunities: What are the most significant growth opportunities the company is pursuing, and how realistic are the projections for expanding into new customer accounts or increasing share with existing customers? Contracts and Customer Retention: What percentage of revenue is secured through long term contracts, and how do they impact the company’s valuation? Competitive Landscape: How does The Company differentiate itself from its key competitors, particularly in technology and operational efficiency? Are there any significant competitors that could impact future growth? Operational Scalability: Given the company's reliance on contingent labor for repacking and production lines, what measures are in place to ensure scalability and quality control as the company grows?

Last week I put out a post on some of the new opportunties DealGen Partners has originated. Below are some more details: The"Live in Market" are active and looking for investors. Happy to make introductions to those interested!