• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Sozo Fire

A Hot Spot of Knowledge

  • Home
  • Topics
    • Business
    • Construction
    • Family
    • Furniture
    • Health
    • Swimming Pools
    • Technology
  • Ask a Question
  • Blog
  • Contact Us

How Retiring Baby Boomers Are Affecting Trucking Business Sales

June 21, 2012 By Sozo Staff

It may not be news that the trucking industry is dealing with a driver shortage, but what about an owner shortage? Across every industry, the nation’s 77 million baby boomers are forming a mass exodus as they retire from the workforce – not only as employees, but as business owners. After years of blood, sweat, and tears, many transportation business owners hitting their 60s are ready to enjoy the fruits of their labor. For prospective trucking business buyers able to make a move at the right time, it may be possible to reap the rewards of the previous generation’s hard work.

Prices will be pushed downward

It’s Economics 101: When supply exceeds demand, prices are driven downward. Unless the number of buyers interested in purchasing trucking companies for sale suddenly skyrockets, business values will naturally fall as more businesses flood the market. Those interested in buying a trucking business for sale or expanding an existing company through trucking acquisitions or mergers will not only enjoy more options, but also significant negotiating power. Of course, this doesn’t take into account the state of the economy. Many would-be buyers and sellers have been holding off as they wait to see what the market does next.

Timing will be everything

Timing has always been an important factor in a successful business sale, but it’s even more critical now. With the potential for a glut of trucking and freight companies for sale, all owners should consider updating their exit strategies and obtaining a current trucking business valuation. Business owners considering a sale may want to take actions to enhance value and put their business on the market sooner than anticipated, before prices take a nosedive. Business value can change dramatically in either direction in just several months. Planning in advance is the most effective way to maximize performance and price.

Terms will matter more

Typically, a situation in which supply is higher than demand is characterized as a buyer’s market. But while interested investors may have their pick of business opportunities, it’s unlikely that many of them will be able to afford a purchase with traditional financing alone. Tighter credit conditions may help give sellers some leverage. By offering seller financing and other attractive terms, trucking business owners may be able to command a higher price for their company and increase their chances of a sale. All-cash deals are already falling out of favor, and the trend is only expected to continue as baby boomers exit the market.

Whether you’re on the buying end or selling end of the market, casting your line at the right time increases the chances of a satisfying deal. An industry expert such as a truck business broker with The Tenney Group can guide you through the preparation and execution of a successful and rewarding transaction.

Filed Under: Transportation

Additional Articles

tractor trailer truck on highway
Divorce and the Value of Your Transportation Business
road closed highway traffic sign
Preparing for the Worst: The Unexpected Death of a Business Owner
truck pulling away from warehouse
3 Decisions to Avoid When Planning the Sale of a Trucking Business
truck pulling away from warehouse
What if My Son Wants to Buy My Trucking Business But Can’t Afford it?


Primary Sidebar

Lyon Financial

Popular Posts

  • Facts About Teak Wood & Its Applications
  • Benefits of Aquatic Exercises
  • Sun Protection Tips
  • Meeting Workout Goals This Year
  • Drowning Prevention in Swimming Pools
  • Black Algae in Your Pool? Here’s What to Do
  • Setting Up Your X10 System: Beginner’s Guide to Home Automation
  • Septic System Pumping in the Charlotte, NC Area
  • What Type of Swimming Pool Should I Add to My Backyard?
  • What to Look for in an Industrial Concrete Flooring Contractor
  • Teach Your Daycare Kids to Care About Sharing
X10 Home Automation

Recent Posts

  • How Can an Inground Swimming Pool Be Affordable?
  • Facts About Teak Wood & Its Applications
  • Drowning Prevention in Swimming Pools
  • Is X10 Technology Obsolete?
  • What to Look for in an Industrial Concrete Flooring Contractor
  • Making Childhood Memories with Furniture from The Bedroom Source
  • Helping Dogs and Cats Get Along
  • Sun Protection Tips, Part 1
  • Black Algae in Your Pool? Here’s What to Do, Part 2
  • Black Algae in Your Pool? Here’s What to Do, Part 1
Lyon Financial

Recent Comments

  • Alice Carroll on Pool Choices: Pool Fences
  • Zachary Tomlinson on Swimming Pool Cover Advantages
  • Hannah on X10 GSM Home Security Systems
  • Michael Cobb on X10 GSM Home Security Systems

Copyright © 2023 Sozo Firm Inc · Privacy Policy · Disclaimer · Sitemap