How to Sell a Limo, Trucking or Bus Company

By: Charles Tenney  09-12-2011
Keywords: business for sale, Transportation Company, Business Valuation

When is the best time to sell a transportation business?

The timing of a sale is influenced by many factors: pending changes to capital gains tax, equipment reinvestment needs, available working capital, when a buyer is ready to do a deal, the economy, equity position in equipment, lack of energy or passion, etc. The best time is different for every business owner and usually is dictated by several factors.

How much is my company worth?

The simple answer to this common question is your company is worth what a buyer is willing to pay for it. A strategic buyer will likely pay a higher price than a financial buyer. Discretionary earnings, customer concentration, capex requirements and service pricing are a handful of many factors that will influence what a buyer will pay for your business.

How long will it take to sell my transportation business?

According to the International Business Brokers Association, the average time to sell a small business is 9-12 months. The Tenney Group commonly completes transportation business sales 4-5 months faster than the industry average.

What size and type of transportation company does The Tenney Group help?

The majority of the assignments we take on involve a business for sale that has annual revenues of $200,000 - $20,000,000+. We serve all segments of the ground transportation industry: trucking, courier, logistics, limousine, ambulance, school bus, charter & tour, non-emergency medical, crew transportation, waste management, etc.

What do I need to do to prepare for a sale?

Obtain a business valuation so you can know where you are. Make the appropriate operational adjustments if necessary to accomplish your exit goals. Consult a tax transaction specialist well in advance of a sale. Organize financial documentation, refine company process and procedure manuals, and consider a website refresh/redesign.

What if my business is losing money?

Regardless if it is profitable, your transportation business may be very valuable to a strategic buyer. Seek help from an industry specialist early while you have as many strategic options available to you as possible.

Why hire a business broker and professional intermediary to lead the sale effort?

Over 80% of buyers and 90% of sellers are first timers. The odds of sellers achieving their desired transaction goals without an experienced transaction professional are not good. Additional value of intermediaries: protecting confidentiality, creative deal structuring expertise, negotiating expertise, helping secure financing for a deal, etc.

How will The Tenney Group market my business for sale?

The Tenney Group’s marketing approach focuses on buyers that may have a strategic interest in your business because they can financially justify paying the highest price. The best buyers may not consider themselves to be buyers. The Tenney Group can convert them into motivated buyers through demonstrating the financial impact available through the acquisition. And, of course, confidentiality is always The Tenney Group’s top priority.

What if I have already been approached by a buyer?

When buyers and sellers have identified each other, the gap between each party’s business value assessments is often wide. Buyers and sellers often struggle to bridge the gap and to overcome other challenges. The Tenney Group offers a “Negotiating Only” service to give sellers the best chance to complete a deal with their preferred buyer.

The information in this article was current at 06 Dec 2011

Keywords: business broker, business for sale, Business Valuation, Transportation Company

Other products and services from Charles Tenney

09-12-2011

Business Valuations for Limousines, Trucking, Transportation Companies

The current value of your transportation business should influence almost every significant financial decision throughout your company’s life cycle--not just the decision to sell it. When business owners clearly understand the value of their businesses, they make sound reinvestments in their business where the risks are proportionate to the potential rewards.


09-12-2011

Let The Tenney Group Sell Your Transportation Business

Ron Legleiter, Former Owner of All American Tours, Hays, KSThe Tenney Group was very professional and resourceful throughout the process. The provided a number of solutions that allowed me to enhance my sale result while creatively reducing my overall transaction expenses. Although The Tenney Group represented the seller, they clearly added value to Village’s transaction experience.


09-12-2011

Services Offered by The Tenney Group

Potential buyers and sellers of transportation businesses often struggle to see eye to eye on the value of a particular transportation company or how to put together a deal that allows all parties to accomplish their respective goals. From an extensive database of industry buyers to a proven track record of getting deals done, The Tenney Group is built for superior transportation business sale results.


09-12-2011

How Tenney Can Help You Wisely Buy a Transportation Business

Once a qualified prospect is identified, The Tenney Group examines the seller’s exit goals and helps educate the seller about the sale process and the current selling market. The Tenney Group searches, qualifies, and screens for the right candidates much faster and far more effectively than a buyer who is trying to work directly with sellers.