Transportation Company

Transportation Company (TC)

Brief Overview

The limousine industry is extremely competitive. Customers are always looking for the next “In” vehicle. For example, the stretch Hummer generated a lot of excitement when initially introduced. They commanded premium pricing and were constantly in demand. As the excitement for the Hummer faded, the industry is looking for the next big thing to offer customers.



TC saw a proto-type of a truck that generates as much excitement as the stretch Hummer did when it was introduced. Based on the proto-type, TC obtained a multi-million dollar contract with a major event planning company and contracted to have 10 of the trucks built. TC put down a large down payment and signed a lease for the vehicles.


The company hired to modify the trucks did not deliver the trucks in time causing TC to breach the contract with the event planning company who terminated the contract. As a result, TC was in severe financial distress and needed a plan to work its way out of the problem.


Why Goff Associates, Inc. (GAI)?

GAI Associates, Inc has a unique understanding of the transportation industry with the financial skills to quickly assess problems, identify solutions, and if needed implement the solutions.



GAI was brought in to assess the problems and provide solutions. It was determined that the agreement with the event planning company could not be salvaged for this season, as a result the company had no positive cash flow. The company responsible for modifying the trucks had financial difficulty of their own and could not finish the trucks. GAI pushed TC to immediately take possession of the trucks from the builder, which it did.


GAI met with the lender and negotiated a delay in future payments until the vehicles could be put to work. In addition, GAI obtained the rights to lease an additional12 trucks bringing the total fleet to 22 trucks and giving TC exclusive ownership of all the trucks of this type in the United States.


GAI then performed a market study and determined that Las Vegas would be the best market to place these trucks.  Los Angeles and Miami would be the next best markets. GAI conducted a due diligence review of the Vegas market and quickly determined that the limousine operators in Vegas have attempted to close the market to outsiders by having a law passed that allowed operators to decide if they can come into the market. This law violated Federal restraint of trade laws and was deemed illegal by at least one court. GAI developed a strategy to hire the firm that won the case and TC has a high probability of obtaining its own limousine license in Vegas. The law firm projected the cost at $20,000 in a market that has the potential to generate millions of dollars of profit for TC. TC is pursuing joint ventures in the interim. Based on GAI’s recommendation, they are targeting Los Angeles and Miami while the license is obtained in Vegas.


In the interim, GAI developed an agreement with a major customer that will rent the trucks immediately upon delivery. GAI also introduced TC to a marketing company that has substantial experience with event planning companies and has agreed to design marketing materials and more importantly negotiate agreements with event planners.


In addition, GAI put together a business plan that allowed TC to obtain additional investment and facilitated the preparation of financial statements.

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