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

Marketinia

Marketing Solutions for Moving Forward

  • Home
  • Topics
    • Business
    • Construction
    • Family
    • Fitness
    • Furniture
    • Health
    • Swimming Pool
  • Ask a Question
  • Contact Us

3 Things You Need To Know Before You Make an Offer

Last updated on October 31, 2012 by Sozo Staff Leave a Comment

Navigating the road to owning your first transportation business can be an up-hill climb, especially when it comes to pricing. The amount of capital you have available is certainly a factor, as is the cash flow you need. At the same time, you don’t want to ignore the aspects of a business that means it fits in with your long-term goals.

A business listed at the low end of your price range may seem like a safe bet, but the reinvestments required over time may end up making the deal less than desirable. Instead, a high-end listing may maximize the return you’ll receive on your investment. Regardless of which way you’re leaning, you’ll want to check out three categories of information: proper pricing, necessary earnings, and financing structure.

Proper Pricing

Even though transportation business owners know how to price their services, they may be rookies at pricing the transportation business itself. That being the case, you can’t assume that the asking price matches up to a professional valuation.

First-time sellers often assume the sale price of an apparently similar company to be a good guideline for pricing their own transportation business. However, the easily identifiable characteristics of a business aren’t the only factors that contribute to a valuation. Differences in customer base, legacy, and specific location can mean very different values.

The individual aspects of each company factor into the kind of professional valuation that leads to a fair price. The Tenney Group’s TransValuation  is one such assessment, and it can help the buyer and the seller to arrive at a mutually agreeable price.

Necessary Earnings

Once you’re confident of a fair asking price, you need to make sure that the business will pay. Of course, this issue is even more significant if you plan for your transportation business to provide your only source of income. You’ll need to determine the answers to the following key questions:

• Is the cash flow stable?
• Are the company’s projected earnings enough to pay your basic bills?
• Do you have enough cash reserves to keep yourself afloat if the first year is shaky?
• Do you have savings to cover unanticipated reinvestments, should problems arise?

Buying a business with excellent long-term potential may not be in your best interest if you can’t keep your head above water long enough to see it reach that potential.

Financing Structure

Most of the funding for the purchase of a trucking business will typically come out of the buyer’s pocket. Of course, taking out a business loan is commonly needed when pockets don’t run deep enough. Traditional lenders and SBA goodwill financing can often provide the finances needed, but when they don’t, sellers may be willing to carry a note. Finding a suitable deal structure can heighten your ability to achieve your business ownership goals.

Photo credits: Top © goodluz / Fotolia. Middle © endostock / Fotolia. Bottom © Andrew Lever / Fotolia.

Filed Under: Business

Additional Articles

flexibility by young gymnastic girl
Nuts & Bolts of Priority Enrollment for Your Gymnastics Center
eager ambitious young ballet students
How to Recognize and Reduce Bullying in Your Dance Studio, Part 3
beautiful young ballerina girls resting against barre
How to Recognize and Reduce Bullying in Your Dance Studio, Part 2
beautiful young ballerina girl resting arms head on barre
How to Recognize and Reduce Bullying in Your Dance Studio, Part 1
Communicating with Parents: When Illness Hits Your Child Care Center
What Goals Can Jackrabbit Help Your Swim School Achieve?

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

seventeen − eight =



Primary Sidebar

Lyon Financial

Popular Articles

  • How to Keep Track of Your Flash Drive
  • Stretching: Can There Be Too Much of a Good Thing?
  • Benefits of Ambidexterity
  • Should I Use Genuine Mahogany or African Mahogany?
  • Marine Grade Plywood Uses and Facts
  • How Much Is Your Trucking Business Worth?
  • What’s All the Excitement over X10 Home Automation?
  • Product Review of NuCedar Materials
  • Heated Driveway Installation by D'Amico Electric of Westchester, NY
  • Mooresville, NC Septic Pumping & Cleaning
  • The Truth About Recovering from Shoulder Labral Repair Surgery
  • Encourage Healthy Choices by Adding a Pool to Your Backyard
X10 Home Automation

Recent Posts

  • Winterizing Your Swimming Pool, Part 2
  • Winterizing Your Swimming Pool, Part 1
  • Keeping Up with Swimming Pool Material Innovation, Part 2
  • Keeping Up with Swimming Pool Material Innovation, Part 1
  • Ipe Wood: An Unusual Lumber Species, Part 3
  • Ipe Wood: An Unusual Lumber Species, Part 2
  • Ipe Wood: An Unusual Lumber Species, Part 1
  • Benefits of a Swimming Pool for a Healthy Lifestyle
  • Maxtrix Bed Options for Kids Rooms
  • Long Island’s Favorite Full-Service Children’s Bedroom Furniture Store
Lyon Financial

Reader Feedback

  • Alice Carroll on Gymnastics Tips: Back to the Basics with 6 Beginner Moves
  • Alice Carroll on The Vinyl Liner Pool Owner’s Guide to Swimming Pool Repairs
  • Alice Carroll on Concrete Sealer: What You Need to Know, Part 2
  • Alice Carroll on Vinyl Liner Options for Your New Swimming Pool
  • Afton Jackson on Pros & Cons of Fiberglass Swimming Pool Liners
  • Alice Carroll on Concrete Sealer: What You Need to Know, Part 3

Copyright © 2023 Sozo Firm Inc · Privacy Policy · Disclaimer · Sitemap