Scaling Through Acquisition Without a Lot of Capital or Outside Investors

Josh and Loretta Davis

Josh & Loretta Davis

Built one of Canada’s fastest-growing logistics companies. With limited capital, we executed a roll-up strategy of small, distressed transportation companies across LTL, FTL, rail, brokerage, and warehousing.

Developed our own in-house software and operating system to scale and integrate efficiently.

Exited to one of the largest transportation companies in North America, backed by a U.S. private equity firm.


Why We Started Buying

We didn’t have a ton of capital, the market was in a downturn, and we saw an opportunity to do acquisitions with struggling companies.

We looked for businesses with strong customer bases but operational chaos - owners who were burned out, teams without direction, no real systems. That’s where we saw opportunity.

We built from the ground up - but scaled by acquiring what was broken, yet fixable.


What Worked For Us

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1. Buy Broken, Not Bad

We targeted businesses with:

  • Great customers but poor leadership or systems
  • Solid service but no structure or tech
  • Founders who needed a way out

Then we did the internal work - getting the right people in the right seats, rebuilding culture, and installing systems that could scale.

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2. Structure Deals That De-Risk You

We didn’t have deep pockets, so structure was everything.
We got creative to limit upfront risk and keep cash flow strong:

  • Modest cash at close (when needed)
  • Seller financing over 3–5 years
  • Performance-based earnouts
  • Profit-share deals - in some cases, we acquired with no money down and paid the seller out of future profits

We focused on deals where we could protect downside, then grow into upside.

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3. Build the Engine Internally

To scale, we built our own in-house operating system:

  • Custom logistics & dispatch software
  • Centralized KPI tracking across companies
  • Playbooks for people, process, and integration

Just as important - we built a team of high-performance, A-player leaders who could execute, adapt, and drive results across every business we brought in.

This became our edge. It let us integrate faster, keep margins strong, and stay lean.

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4. Drive Synergy Across Verticals

We layered acquisitions across:

  • LTL & full truckload
  • Rail & intermodal
  • Warehousing & brokerage

Then we cross-sold, centralized ops, and created margin through smarter execution - not bigger marketing budgets.


Landmines to Avoid

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Overpaying based on peak years

- underwrite on normalized EBITDA, not founder hype
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Assuming culture will “just adapt”

- leadership turnover kills momentum if not handled early
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Buying what you can’t fix

- some problems are operational, others are cultural and far costlier

"You don’t need a lot of capital or outside investors to scale. You need clarity, grit, a high-performance team, and a repeatable system."

— Josh

Ready to Scale Your Business?

If you're serious about scaling, want to grow through acquisitions, or are exploring exit strategies- let's connect.

Email me at info@jldavisenterprises.com