When you’re selling a trucking company, finding the right buyer is only half the battle. Business owners must also retain the interest of their best buyer long enough to make it to the closing table. Deal flow is what keeps an agreement moving forward. Mistakes and misunderstandings interrupt flow, stalling negotiations and increasing the odds that a buyer will move on. By using proven skills and strategies to control deal flow, business brokers increase the chance of a successful trucking business sale.
Buyers invest in businesses that offer predictable returns. If a company’s competitors, customers, or employees discover the firm is in the midst of a sale, they may get nervous and jump ship, driving down value in the process. By taking strict measures to protect anonymity, truck business brokers can maintain privacy – and buyer interest.
Because buyers and sellers have differing incentives, it can be a challenge for them to communicate effectively. Sellers may not disclose important details about their business because they are afraid of scaring off buyers. Buyers may not raise concerns about a company because they don’t want to offend its owner. A lack of information can create delays, breed mistrust, and put a deal at risk. As experienced intermediaries, truck business brokers such as The Tenney Group ensure both parties are on the same page.
If your once-promising deal falls apart, it may have less to do with your business and more to do with the people managing your sale. Many business owners assume that because they can sell trucking services, they can sell a trucking company. But managing a transportation business and making a life-changing transaction are two different things entirely. Unless sellers have transaction experience, it is impossible for them to anticipate and mitigate the inevitable obstacles and snags that come with putting a trucking company for sale. Inexperienced accountants and attorneys tend to be overly conservative, which can result in buyer frustration. When your biggest asset is on the line, it’s best to leave it to the experts.
All too often, sellers set their price based on misguided advice and generic valuation formulas that don’t consider the unique qualities of their business. When your price is too high, buyers will quickly realize that your business documents don’t back up your valuation. If you ask too little, you will miss out on the opportunity to leverage hidden value for higher returns. Not only can business brokers perform a trucking company valuation that takes into account both tangible and intangible assets, but they can clearly express that value to buyers if questions arise during bargaining.
The power of a professional presentation can’t be overestimated. Often times, sales get stalled because of missing or unclear information. A neatly organized selling memorandum, letter of intent, and purchase agreement help keep a deal moving forward by providing all necessary information upfront.
With so much at stake, it’s common for buyers and sellers to get stuck while hashing out the terms of a sale. Professional brokers have the talents and expertise to quickly get a derailed deal back on track and smooth out any additional bumps in the road, turning a complex process into an effortless agreement.