The buzz in the marketplace is that now isn't the right time to sell a light duty trucking business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
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You'll always have an excuse for not putting your business on the market. Any light duty trucking business can be sold at any time -- you just need to know how to influence the right buyers.
Understanding Market Timing
Now may be the best time to sell a light duty trucking business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on light duty trucking businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
When the Sale Goes Off-Course
Many light duty trucking business are tempted to save brokerage fees by selling their businesses on their own. But for every successful unassisted sale, several other light duty trucking businesses sell below market value or languish on the market for years without attracting the interest of qualified buyers. 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 light duty trucking business is priced out of the market. Hire a broker and conduct a professional appraisal ASAP.
Preparing Your Employees
Business sellers face a dilemma when it comes to their employees. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. When that happens, it's best to have a frank conversation with your team rather than allowing rumors to circulate through the organization. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
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