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

Sozo Fire

A Hot Spot of Knowledge

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

Top Mistakes Owners Make When Negotiating a Trucking Business Sale

July 18, 2012 By Sozo Staff

What happens at the bargaining table can make or break a business deal. But since most trucking business owners have no prior experience selling a company, it’s easy for them to make mistakes that drive away buyers. Whether it’s by setting an unrealistic price, expecting an all-cash deal, or taking offense when a buyer asks a valid question, sellers can be their own worst enemies.

If you’re serious about putting your trucking business for sale, it’s imperative that you set aside your owner bias. Of course, that’s often easier said than done. Because a business sale is often an emotional experience for an owner, it’s helpful to enlist the assistance of a middleman such as an experienced trucking business broker to help negotiations stay on track.

Bending the Truth

Honesty truly is the best policy when you’re putting a trucking company on the selling block. Many times, business owners feel compelled to fudge numbers or skim over the details of debts, lawsuits, and other liabilities. But sugarcoating the truth is only putting off the inevitable, as the real story will come out during due diligence. No business has a clean slate, and buyers naturally expect to encounter some problems. You may think you’re doing yourself a favor by failing to disclose a lease that’s about to expire or a recent downward trend in earnings, but withholding details is a surefire way to lose a buyer’s trust.

Pricing with Bias

Many sellers make the mistake of setting a price based on their needs rather than the needs of a buyer. Buyers don’t care how much it will take you to pay off debts or retire comfortably, or how much you think the business could be worth after a new owner makes a whole host of changes. Valuation is determined by a complex combination of the market and the factors that make your business unique. A transportation business broker with trucking industry experience has the technical savvy and market knowledge to set a price that’s right for buyer and seller.

Being Inflexible

Sometimes the biggest obstacle to a sale isn’t financial, but emotional. Many potentially lucrative transactions are spoiled by ego. Before you eschew expert advice or turn down a price without looking at the structure of the deal, put yourself in the shoes of your buyer. Purchasing a trucking business is expensive and intimidating. When you’ve got a buyer ready to agree to a million-dollar deal, do you really want to bicker about the small stuff?

Wasting Time

There are many reasons why someone may look into buying a business, whether they’re seeking to buy a stable job or dreaming of making a fortune. However, looking to buy is different than being prepared to buy. When you put your truck business for sale, the vast majority of inquiries you receive will be from window shoppers. Many sellers get burned out with the sale process because they spend the first few months wasting time on unmotivated buyers. These individuals will nitpick at price and ask for unrealistic deal structures because they either can’t afford your business or aren’t willing to make a commitment.

The longer you waste time on unsuccessful negotiations, the more you risk disrupting operations, losing market value, and turning off motivated buyers who wonder if there’s something wrong with your business. A transportation industry intermediary can get the job done smoothly and swiftly so you can move forward.

Filed Under: Transportation

Additional Articles

Selling a Business: How to Package Your Business for Sale
Is Your Business Ready to Grow?


Primary Sidebar

Lyon Financial

Popular Posts

  • Berg Furniture Children’s Furniture Lines: Options and Space Savings, Galore
  • Dream Furniture for Your Child, Part 2
  • Tropical Decking and Ipe Alternatives
  • Dream Furniture for Your Child, Part 1
  • Benefits of Going on a Mission Trip
  • Why Walnut Gets Special Treatment, Part 2
  • Business Flash Drives
  • Septic System Pumping in the Charlotte, NC Area
  • Custom Wire Oven Racks by Three M Tool for Bakeries
X10 Home Automation

Recent Posts

  • Setting Up Your X10 System: Beginner’s Guide to Home Automation
  • Options for Home Automation: What Makes X10 Different?
  • Benefits of Aquatic Exercises, Part 2
  • Benefits of Aquatic Exercises, 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
  • How the X10 HUB Advances Already Incredible Technology
  • What Makes X10 Home Security Systems Unique
  • Should You Think About a Pool & Hot Tub Combination?
  • Drowning Prevention in Swimming Pools
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