In a perfect world, every owner would prepare their trucking business for sale from day one. In real life, most of us aren’t that organized. That’s why it’s so important to begin grooming your company for buyers from the moment a sale seems likely.
First impressions really do count. Buyers need to ensure that they’ll be financially rewarded for their investment. When a company is presented in the best possible light, it is easier for prospective buyers to gauge its potential. By priming your truck business for sale, you may just prime investors to pull the trigger and purchase it.
Buyers are looking for a business opportunity they can count on. If they can’t quickly decipher the profitability or strategic benefits offered by your business, there’s a good chance they won’t pursue it. Before you put your trucking company for sale, update your financial records, tidy up your assets, and tie up any loose ends. If you can collect overdue payments and pay down debts, this is the time to do it. Of course, buyers will investigate your business more thoroughly as they conduct their own due diligence. But first, you need to convince them your company is worth investigating.
One of the biggest advantages of buying an established business is the ability to immediately gain existing customers and employees. It can be difficult for brand new companies to gain clients and hire knowledgeable workers. In an acquisition, it may be a challenge for the new owner to retain a staff and client base. By securing written agreements with key players, sellers can reassure buyers that a market will continue to exist after the business changes hands. If customer concentration is high, picking up new clients before putting your truck or freight brokerage business for sale can help attract risk-averse buyers.
Having the right expertise and skills for managing a trucking business might make you a good owner, but it doesn’t necessary make you a good seller. The more involved you are in everyday operations, the more likely it is that business will suffer when you leave. A buyer’s greatest worry is that essential employees, clients, and suppliers will walk when you do. By putting policies and procedures in writing, defining employee roles, and delegating owner responsibilities, you will increase the odds that your business will thrive with you and without you.
Most buyers won’t even consider your business if your price doesn’t accurately reflect value. Yet many business owners aren’t entirely clear what their companies are worth. Value is a complicated concept based on multiple factors, including earnings, assets, and market demand. When you understand your true value, you can make important decisions to enhance it – from reinvestments to the timing of your business sale. Truck business brokers have the expertise to accurately value your business – and convey that value to your best buyer.