Perhaps you haven’t considered the idea of growing through acquisitions. By acquiring another business, your company can often offer greater returns with fewer risks than the kind of organic development for which you’ve no doubt hoped and planned. As you gain a better understanding of the potential benefits and typical process of acquiring another business, you might just want to give it a try. These tips use the examples from the transportation industry, but with some minor adjustments, they could be applicable to nearly any field.
Reasons for Acquisitions
From replacing lost sales and increasing cash flow to seeing the value of your existing transportation business rise, many of the benefits of acquiring another transportation business are directly financial. Others are indirectly beneficial. Examples include securing a strategic location, well-trained employees, or cutting-edge technology that help give your business enterprise an otherwise out-of-reach advantage. Another potential attraction might be a greater volume of vehicles, enabling you to increase your fleet utilization. You could also buy out your competition to avoid the expense that comes from trying to beat out your competitor’s prices. Whatever reasons top your list of benefits, you’re bound to appreciate many of them through a well-timed, strategic business acquisition.
Steps to Acquisitions
As a transportation-industry business broker service, The Tenney Group knows the ins and outs of acquiring a new transportation business. If you aren’t part of the transportation industry, we recommend you find and hire a qualified, specialized broker to help you through the buying process. Our recipe for success includes 5 basic steps:
Step 1 includes finding and screening suitable businesses. We can help you with the search and qualifying process by promoting the kind of open discussions regarding exit strategies that are uncommon between competitors.
Step 2 includes understanding seller goals and educating the prospective seller. As we seek to provide sellers with information about the selling process and current market situation. Often, sellers are much more likely to accept such assistance from a third party who’s also an expert within the transportation industry than they would be from a generic business broker or, understandably, a potential buyer.
Step 3 includes recommending and presenting your offer. Already having a grasp of he seller’s goals allows us to recommend reasonable offers to you, the prospective buyer. Our goal is to help both parties meet transaction goals because if both parties are happy, the deal has a much better chance of actually going through. Our creative deal structuring keeps both the buyer’s and the seller’s best interests in mind, and once we review our recommendation from the buyer and solidify an offer, we present it thoroughly to the seller, making sure all details are clearly understood.
Step 4 includes the kind of third party negotiating that offers far more stability than direct negotiations between buyers and sellers. The distance provided by a third party industry expert helps alleviate emotional decisions and communications, while keeping those all-important lines of communication open.
Step 5 involves closing the deal. The Tenney Group coordinates with the various professionals involved in seeing this final step come to fruition. Professionals such as accountants and attorneys will all be contacted by The Tenney Group, helping buyer and seller arrive at the finish line with all the necessary details in place.
For more information on The Tenney Group, visit thetenneygroup.com today. They’re leaders in the transportation business brokerage industry, and they can provide you with the expertise you need to successfully buy or sell a transportation company.