Taking over a removal company: how to analyse costs?
Introduction
The removal sector combines logistics, labour-intensive operations and fleet management. Taking over such a company requires a precise understanding of its cost structure, which is far more complex than it appears.
Beyond the stated turnover, it is the analysis of actual costs that reveals the effective profitability of the business. Vehicles represent a major investment, with maintenance and compliance costs often underestimated. Staff constitutes the second critical item: high social charges, management of seasonal peaks and frequent turnover weigh heavily on margins.
Seasonality accentuates this complexity. Periods of high activity (end of month, summer) require additional resources, whilst quiet months can compromise profitability if fixed costs are not controlled.
This guide details the expense items to analyse as a priority when taking over a removal company. Objective: identify areas of financial risk and validate the viability of the project before committing. An approach similar to that used to evaluate the margins of a renovation business, adapted to the specificities of transport and handling.
📌 Summary (TL;DR)
Taking over a removal company requires rigorous analysis of fixed costs (vehicles, insurance, rent) and variable costs (staff, fuel, maintenance). Payroll and social charges often represent 50 to 60% of turnover, whilst seasonality requires flexible resource management. Check the actual condition of the fleet, the structure of margins by type of service and the company's capacity to absorb activity variations before finalising your decision.
📚 Table of contents
Fixed costs to analyse as a priority
Fixed costs represent the foundation of the financial structure of a removal company. They remain constant regardless of the volume of activity.
The vehicle fleet constitutes the first item: leasing or depreciation, insurance (comprehensive, vehicle liability), regular maintenance. Budget between 15,000 and 25,000 CHF per vehicle per year depending on size.
Storage premises generate monthly rents that vary considerably depending on location: 150 to 300 CHF/m² per year in Switzerland. A 200 m² space therefore represents 2,500 to 5,000 CHF monthly.
Professional insurance is mandatory: company liability (damage caused to clients' property) and transport insurance. Annual budget: 8,000 to 15,000 CHF depending on turnover. To explore regulatory aspects further, consult our guide on licences and contracts in transport.
Vehicles: acquisition, maintenance and compliance
The condition of the vehicle fleet determines the immediate investments required after the takeover.
Analyse the average age of vehicles: beyond 8-10 years, maintenance costs explode. Check current leasing contracts: remaining duration, buyout or transfer conditions, potential penalties.
Average annual maintenance costs: 3,000 to 5,000 CHF per vehicle (servicing, tyres, repairs). Examine invoices from the last 24 months to identify problematic vehicles.
Swiss compliance requires regular technical inspections (FEDRO expertise) and compliance with emissions standards. A non-compliant vehicle requires immediate investment or replacement. Request recent inspection reports and plan upcoming deadlines.
The structure of variable costs
Variable costs evolve directly with the volume of activity of the removal company. Their control directly impacts profitability.
Fuel represents 8 to 12% of turnover depending on average distances travelled. Motorway tolls are added for long-distance removals: 40 CHF return Geneva-Zurich for example.
Packing materials (boxes, bubble wrap, blankets) cost 50 to 150 CHF per standard removal. Check purchasing conditions with current suppliers.
Ad hoc subcontracting allows management of activity peaks without hiring: 350 to 500 CHF per day per external removal worker. Analyse the frequency of use over the last 12 months and its impact on margins.
Staff: payroll and social charges
Payroll generally represents 35 to 45% of turnover in the removal sector. Its structure determines operational flexibility.
Distinguish permanent employees from temporary or seasonal workers. Swiss social charges amount to approximately 20-25% of gross salary: AHV/IV/EO, BVG (2nd pillar), UVG (accidents), family allowances.
Check the application of a collective labour agreement (CLA): it may impose minimum salaries, seniority bonuses or specific conditions that rigidify the structure.
Staff turnover rate reveals management quality: high turnover generates recruitment and training costs (1,500 to 3,000 CHF per hire). Analyse departures over the last 24 months and their reasons.
Seasonality and management of activity peaks
The removal sector experiences marked seasonal variations that impact cash flow and organisation.
The months from May to September concentrate 60 to 70% of annual activity. This concentration creates pressure on resources: vehicle availability, staff capacity, schedule management.
Analyse how the company manages these peaks: use of temporary workers (cost 15 to 20% higher than permanent employees), rental of additional vehicles, refusal of contracts due to lack of capacity.
Quiet months (November to February) weigh on cash flow: fixed costs continue whilst revenues drop by 40 to 60%. Check cash reserves and the capacity to absorb these periods without external financing.
Margins and profitability by type of service
Not all removal services generate the same profitability. Analysis by segment reveals the company's strengths and weaknesses.
Residential removals: gross margin of 25 to 35%, high volume but strong competition. Corporate removals offer margins of 30 to 40% with more stable contracts but increased quality requirements.
International removals generate the best margins (40 to 50%) but require specific skills (customs, logistics) and reliable partnerships abroad.
Ancillary services (storage, packing, clearance) improve overall profitability with margins of 35 to 45%. Identify the most profitable services and their development potential. To explore margin analysis further, consult our guide on evaluating margins in renovation, applicable to service trades.
Points of vigilance before the takeover
Certain warning signals should trigger an in-depth analysis before finalising the takeover of a removal company.
End-of-life vehicles (over 10 years) require immediate replacement: 60,000 to 100,000 CHF per lorry. Maintenance contracts that are too costly or rigid limit your future room for manoeuvre.
Dependence on a major client (over 30% of turnover) represents a risk of sudden revenue loss. Check the solidity and duration of main client contracts.
Ongoing disputes (uninsured damage, employment disputes) can generate unforeseen costs. Request a comprehensive statement of legal proceedings.
Regulatory compliance (licences, insurance, social standards) determines operational continuity. A financial audit by an independent expert secures your decision. The Leez partner network can support you in this analysis. Also use our valuation tool to estimate the company's value.
Taking over a removal company requires rigorous financial analysis. Fixed costs (vehicles, insurance, premises) and variable costs (fuel, temporary staff) must be evaluated precisely. The structure of payroll, the condition of the vehicle fleet and regulatory compliance are determining factors for profitability.
The sector's seasonality requires cash flow management adapted to activity peaks. Margins vary considerably depending on the type of service: residential removals, commercial removals or complementary services. A detailed analysis of costs by category allows identification of profitability levers and potential risks.
Are you considering taking over a removal company? Discover the companies available on Leez and access verified financial information. Need support to analyse the figures? Our network of experts can support you in your takeover project.
