You are burned out and exhausted with your Texas trucking business. You financed too large of a loan and cannot get ahead in the industry. Your relationship with your family is beginning to suffer. You are looking for a quick way out.
This scenario can ring true to many business owners. They become so tired of their industry that they look for a quick sale. However, they usually end up losing a great deal of money and feel even more regret afterward.
Here are some of the most common mistakes that cost the owner money during a sale:
Business owners may have an unrealistic idea as to what their business is worth. They may think that their limo business is worth way more than it actually is. Usually the owner does not have enough experience to use methods and calculations that are specific to the transportation industry. They may reach their own value and decide to wait for a buyer to bite. However, if their listing is too high, their business may sit for a year without even one offer.
2.) Dealing With One Buyer
A seller may be anticipating closing the deal with one particular buyer. However, at the last minute, the buyer backs down and the sale is off. The seller may wait several more months before another interested buyer approaches them.
A seller may make the mistake of leaking details about the sale to friends or family members. This can often cause a panic among employees. It can also give your competitor a chance to use your sale against you. This can, in turn, take money off of your transportation business’ value.
Many business owners are not aware of their business’ value, which in turn may make them seem uneducated about their business. A seriously interested buyer will research and know every aspect of your busing company. If you hesitate in answering questions that they have already researched and learned about, they will use this against you. They will then gain leverage in the negotiation process.
5.) Qualified Buyers
A seller may have several interested buyers. They may spend weeks negotiating a deal contract with one particular buyer, only to find out that they are not a qualified buyer. They cannot finance enough money to purchase your trucking company. All of the time and negotiations were a waste and the seller must start over with another prospective buyer.
Many transportation business owners find themselves stuck in the sales process for a long time with very few offers because of their own sales inexperience. By working with an expert business broker, the seller can get an accurate valuation, deal with several competing buyers that are pre-qualified, maintain confidentiality, and make informed, educated decisions. If you are selling your transportation business, don’t let these common mistakes cost you money.