Advice on Niche Market Exit Planning
Selling a Trucking Companies Business
Selling a trucking companies business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
In a down economy, many trucking companies business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of trucking companies businesses that are actually for sale.
Market timing is a constantly moving target. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a trucking companies business sale. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. Although some trucking companies business sellers advertise their businesses in general classifieds, the most successful sales are those in which professional brokers seek out likely buyers. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Turning the Tables: Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
When the Sale Goes Off-Course
Many trucking companies business are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your trucking companies business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
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