Regardless of size or industry, all business owners have one thing in common: each will exit the market at one time or another. There are many different reasons why an entrepreneur may throw in the towel. Understanding the most common motivations can help business owners proactively plan for an advantageous exit and assist buyers in making sound decisions about buying trucking companies for sale.
With millions of baby boomers now in their 60s, retirement is an increasingly common incentive for leaving the market. Cashing out can give an owner the time and funds needed to pursue other interests, hobbies, or ventures.
But while many business owners hope a business sale will allow them to retire comfortably, that isn’t always the case. As the nation’s largest generation exits the market, oversupply could make it difficult for sellers to receive their desired prices. Economic fluctuations or unanticipated personal problems may also impact the price received from a truck business sale.
For buyers, however, more retirees putting their trucking companies for sale means a larger pool of lucrative yet affordable investments.
Sadly, many business owners sell because of need, not choice. Owners might hope to cash out or hand over the reins to a relative upon reaching retirement age, but unfortunate circumstances may require them to sell much sooner. From partner disputes and divorce to injury and illness, unexpected events frequently force transportation business owners to take their businesses to market with little preparation – often resulting in a below-market price.
Routinely updating an exit strategy can help ensure that, if the worst does happen, owners will still receive a fair return on their investment.
Sometimes the market decides your exit date for you. Economic and market changes are the downfall of many once successful companies.
Contrarily, businesses can also be victims of their own success. Often times, an owner will nurture a startup to profitability only to discover that taking the company to the next level brings new complications in addition to new opportunities for profit. It may be better to hand over the reins to a bigger company that can leverage the benefits of the growing business – and compensate you for those benefits.
For owners forced to sell a poorly performing or expanding business, truck business brokers may be able to recommend value enhancement tactics to increase purchase price.
Owning your own business can be exhilarating, but it can also be exhausting. Many owners who are actively involved in the daily operations of their trucking business become burned out and bored. When a business no longer sparks your passion, it’s only a matter of time before trucking company value (and your well-being) is affected.
New business owners should ensure they are not setting themselves up for failure by shouldering too many business responsibilities on their own. If you’re buying a trucking company from a burned-out seller, make sure that the business wasn’t so reliant on the former owner that it falls apart during the ownership transition.
By sharing responsibilities with other employees, business owners can improve the quality of their operations and increase the odds that the business will continue thriving in new hands.