No matter what point you and your business are at, it’s important to be wise with your decisions. That being said, if there’s a possibility you might try to sell your business in the coming years, the stakes are even higher. The decisions you make could drive buyers away, or draw them to you like the destination on a GPS. We’ve worked with a lot of sellers over the years, and we’ve come across many less-than-ideal situations that affected the sale. Here are a few things you should consider.
- Not Understanding the Value of Your Business
At any point in time, it’s imperative you know the value of your business. On one hand, there’s nothing more disappointing than expecting a larger number than you can possibly receive in a sale. On the other hand, you may be undervaluing your company because you may have left out additional factors improve your business’s overall worth.
To avoid disappointment, get a TransValuation – our proprietary, industry-specific valuation, so you can be confident in yourself and your company as you enter the market.
- Purchasing New Equipment that Puts You in the Red
While investing in your business is often a good idea, if you plan on selling in the coming years, adding liabilities may not be the best idea. Purchasing new equipment that will not be fully paid for by the time you sell can scare away prospective buyers in certain situations. Contact one of our transportation industry experts before you make any large financial purchases to ensure you set your business up for a successful sale.
- Not Concentrating on the Right Customers
Sure, it’s tempting to take on every single customer who calls you, but at some point, that habit may be harming your bottom-line. If that time comes, it’s important to course correct before it hurts your ability to run your business properly. For example, if you have been struggling to get your customers to pay, and it’s affecting your cash flow, it will scare potential buyers off. To prevent these types of situations, consider running credit checks on clients to confirm their ability to pay – so you’re not left in the dust.
The decisions you make now will affect how your sale plays out, whether that’s one, five, or ten years down the road. If you’re interested in getting expert advice as you plan your exit strategy, contact us today.