A national same day courier company has raised concerns about the growing number of single director logistics businesses approaching retirement age without a succession plan or clear strategy for their eventual exit.
In the UK, more than 800,000 companies across all industries have an average director age of 60 or older and, according to the Office for National Statistics and Department for Transport, around 92% of registered enterprises in the freight transport sector employ fewer than 10 people.
Jamie Boyd, founder and managing director of Today Team, also highlighted UK Advisory and Broker Data findings that four in five businesses brought to market fail to find a buyer, with poor preparation often cited as a contributing factor.
‘Building Today Team from the ground up gave me a real sense of purpose and the opportunity to create a legacy after a knee injury ended my professional rugby career when I was 24,’ said Jamie. ‘Two decades on, and having recently become a first time father, I am thinking more than ever about what the future looks like. That is something I know many owner-operators struggle with. When you are running a same day logistics business, so much of your focus is inevitably on the here and now – making it difficult to step back and think about succession, growth and, ultimately, how you want to exit the business. But the statistics clearly show why these conversations are so important. No one wants to reach retirement age without a plan, or the point of selling their business, only to find that the option they had worked towards is no longer on the table.’
Over the past three years, Today Team has completed two major takeovers – integrating Speedy Courier Services and Elite Logistics through asset based acquisitions into its multi-million pound business.
Jamie said this experience has shown him that acquisitions can provide a valuable route out for founder-operators looking to leave the courier industry – whether to pursue opportunities elsewhere or because there is no obvious succession plan.
‘When you have built something from scratch and developed strong relationships with your customers, the thought of that legacy coming to an end can be difficult to accept,’ he said.
‘For many owner-operators, their business represents not just a livelihood, but years of hard work and reputation. Handing over the reins to an established courier company that shares their values and has the infrastructure to maintain those standards can, therefore, provide a real sense of relief. I think it is always worth having an early conversation about what the options might be. Whether it is a succession plan, a sale or another route, having those discussions early gives owners more choices when the time comes to decide what happens next.’
According to the Exit Planning Institute, the main reasons for businesses failing to sell are poor bookkeeping and an overreliance on the founder.
Jamie said being ‘exit ready’ starts with maintaining clear, accurate financial records – giving potential buyers the information they need to assess the business and arrive at a fair valuation.
‘If a business cannot function operationally without its founder being present or making every decision, that can be another barrier to acquisition,’ added Jamie.
‘Ultimately, we need to ensure the logistics industry is in a strong position to meet the growing demand for delivery services. That means futureproofing the sector as a whole and making sure profitable, dependable businesses continue to thrive.’