When considering a sale, some trucking business owners wonder whether their small business is, well, a little too small. They may assume that, with little to no profits or a small fleet, no one will be interested in buying their company. While there’s no one-size-fits-all answer, the good news is that when it comes to putting your trucking business for sale, size is relative.
Value Is In the Eye of the Beholder
Trucking business valuation is about more than the size of your company. A savvy buyer will look at everything from physical location to brand reputation to the steadiness of cash flow when considering a purchase. Besides, just because you consider your trucking business small today doesn’t mean it will be small tomorrow. Potential for growth is an important part of value, too. Keep in mind that any business, no matter what its circumstances, can be valuable to the right buyer – even if that buyer doesn’t know it yet.
If you lack the time or resources to grow your small business, a new owner may be willing to make the investment for you. Maybe your ideal buyer already owns a trucking business and is looking to expand into a new territory. In this case, he or she might be more interested in your customer base and recognizable brand than the size of your company. If your profits are modest but steady, your business might appeal to an individual buyer looking for an instant way to supplement income. By slapping a price tag on your business based on obvious factors like size, you miss out on the chance to capitalize on its hidden value.
Getting the Facts
You’ve built a brand, assembled a fleet, and won the hard-earned respect of your clients. All of these achievements add value. Unfortunately, most new sellers (and many general business brokers) tend to overlook these aspects when it comes to targeting potential buyers. Make sure you’re getting the facts about your business’s true worth. A broker that specializes in listing freight hauling businesses for sale will be familiar with the unique complexities of the trucking industry, and may better understand how to value your business – and express that value to possible investors. Enlisting the help of an expert can help you find the right buyer at the right price, even when your business is on the small side.