There’s no exact formula when it comes to selling your transportation company. Each business is unique in the sense that they will attract a different type of buyer. At Tenney Group, we’ve got over 40 years of experience working with buyers and sellers, so we’ve seen all types of transactions – each taking place for a wide variety of reasons. With each case, we grew to understand the market in ways someone outside of the transportation industry may not realize. Here are just a few of the things to consider as you plan your next move.
- Don’t Count Out the Competition
They may have made day-to-day business a struggle. Maybe they’re your sworn enemy as you battle for business. You should still consider the fact that your business might be a valuable purchase for your competition. More often than not, the purchase of a ready-made business is a smart purchase because it is more financially beneficial, and takes less time to build, than starting from the ground up. In that same vein, your rival won’t have to compete with you for sales any longer. If your competitor recognizes the value in this, you may end up with an offer that exceeds your expectations.
- Consider Your Team
If you have children, you may have thought about keeping your business in the family. This doesn’t always work out, for many reasons. For instance, your children may not be interested in the family business, or they might not have the proper skill set to continue to run daily operations within the timeframe in which you’d like to sell. Instead, if you have a top team member who knows the ins and outs of your company, you may want to have a conversation with them about their future plans. This type of transfer not only helps your right-hand man (or woman), but also leaves your entire team in a good position – since operations will probably stay level after the sale.
- Be Flexible if Possible
If you’ve found a buyer, try being flexible while negotiating. There may be some aspects of the deal that the buyer would like to implement that won’t affect your outcome much. For example, the timing of the sale may not affect you, but if the buyer gets their desired closing date, they may be willing to raise their offer. They say the devil is in the details, and hemming and hawing over things that don’t matter to you over the long run may negatively affect your deal, or even cause the buyer to walk away. Pick your battles carefully, and you’ll leave the table with top dollar for the sale of your business. Plus, you’ll avoid the stress of worrying over small picture items that will be meaningless to you the moment you sign on the dotted line.
At Tenney Group, our transportation industry experts are ready to help you plan the exit strategy that makes the most sense for you and your business. Contact us today to start planning for your future.