When you don’t know your own value, it’s hard to convince others of it.
To sell your bus business, you have to tell a story; the story of how your business can make someone else money. The prospect of investing in such an asset-rich company, such as yours, can scream of added debt, which can make your potential buyer market shrink. That just means you must provide extra reassurances, from the very beginning of the process, in order to make the sale.
Many owners make the mistake of thinking their success speaks for itself. While it is great to be able to boast of high profits and a booming business, even that isn’t always enough to entice buyers who are wary of what hides underneath the surface.
So, what can you do to provide the transparency needed to make the successful sale? You need to come to the table with a plan that proves the worth of your business as a whole. Here are three must-have solutions you should be providing to any prospect who shows interest in your bus business:
- Debt Service: Most bus businesses retain a certain amount of debt, so don’t feel like the debt itself will be an issue for potential buyers. However, you should be able to demonstrate your business’s capability to service all debts, and then show the prospective purchaser how they could do the same.
- Capital Expenditure: It costs money to make money, and everyone knows that – including your buyer. Even so, your buyer needs to know exactly how much it will cost them to maintain and enhance the assets that come along with the sale of your bus business. Be sure to incorporate all regular maintenance costs for all assets that will be involved in the sale.
- Profits: No one wants to purchase a business that will come with expenses that surpass profits. On top of relaying a detailed plan on how your potential buyer could service debts, and stay ahead of capital expenditures; you’ll also want to paint a picture of the financial gains they stand to receive if they make the smart decision to acquire your bus company.
When dealing with large transactions, confidence is the key. You’ll want to have a deep understanding of how your business utilizes funds, handles debt, and profits. Not only will potential buyers take you more seriously, but you will have a deeper understanding of your company’s value.
You can ensure you’re conveying the necessary information by preparing for sale with a valuation performed by one of our experts. We specialize in advising transportation companies, and we take a cohesive approach – detailing and including specifics that are often missed by professionals outside of the niche.
Next, we can negotiate with buyers for you. Over the years, we’ve learned what buyers care about most, and so we come ready to the table – providing potential buyers with plans that enable them to service debts, to handle capital expenditures, and to get a return on their investment.