What should I ask about a trucking company’s owner-operator turnover?
Ask for a list of every owner-operator who has left, with start and end dates and the reason. Then compare who stays with who goes. Steady turnover can be normal in the trade, but find out whether the reasons are pay, dispatch habits, waiting time or something the next owner can fix.
Ask the seller to list current and former operators with dates, then look at tenure. A handful of long-serving operators and a revolving door behind them tells a different story from even turnover. Ask which operators run the best lanes and how likely they are to stay after a sale. The company may depend on a few people more than the revenue figures suggest.
Ask why people leave. Check whether exit conversations are held, what operators say about settlements, fuel arrangements and lane assignments, and whether former operators left on good terms. If you may speak with a few, ask them directly. Their answers often say more than the seller’s summary.
Then look at replacement. How are new operators found and how long does it take to get them working? What does onboarding cost in lost time and paperwork? If the company relies on a single recruiter or a personal network, that skill may leave with the owner. Ask also whether any operators bring their own customers and could take them elsewhere. Your lawyer can advise on whether any restrictions apply to them, and whether they would carry over.
Key takeaways
- Get a dated list of departures with reasons, and read tenure patterns.
- Ask which operators run the best lanes and whether they would stay.
- Find out how replacements are found and who does it.
- Ask how replacements are found and whether that skill stays with the business after the sale.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to reduce employee turnover
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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