Fort Point’s operating expertise and strategic oversight significantly helped enhance LSO’s profitability, cash flow and success. In addition, the team worked closely with our team to evaluate new growth opportunities and position us for continued success.

At-A-Glance

Company:
Lone Star Overnight
Location:
Austin, Texas
Sector:
Business Services
Date Acquired:
April 2011
Exit Date:
April 2014
Case Study | Lone Star Overnight

This regional express package service was looking for new growth. Fort Point Capital delivered.

Situation

Based in Texas, Lone Star Overnight is a leading regional express package delivery service that offers later pickups and earlier deliveries at significantly lower rates than the national carriers. 

The company turned to Fort Point Capital to help drive double-digit earnings growth and improve profitability.

Our Role

Fort Point Capital helped to enable management’s plans and fuel the company’s growth in a number of ways, including: 

Executed Strategic Planning

  • Completed a strategic planning project to drive incremental profitability.
  • Refocused the business on a differentiated overnight express service offering.
  • Executed market penetration and strategic partnerships with extra-regional carriers to expand its market/geographic footprint.
  • Exploited the burgeoning demand for next-day service from major e-commerce companies.

Aligned Management Team Incentives

  • Created and implemented performance-based compensation program.
  • Senior managers invested for the first time.

Expanded Margins

  • Completed strategic pricing and marketing project, driving significant yield improvements. 

Repositioned Fleet

  • Renewed investment in infrastructure.
  • Improved vehicle acquisition strategy, improving free cash flow generation. 

Improved Sales and Marketing Effectiveness

  • Strengthened the management team by recruiting a new Director of Marketing and Vice President of Sales. 
  • Improved sales and marketing infrastructure to further penetrate SME market. 
  • Rehired, organized and trained sales force to better win new customers and expand share of wallet. 
  • Replaced advertising agency.

Results

With Fort Point Capital’s support, Lone Star Overnight was able to grow substantially while generating strong free cash flow.

Fort Point Capital sold Lone Star Overnight to Eagle Merchant Partners in April 2014.