October 18, 2019  
 
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Selling a Company

 

Selling a Personal Freight Forwarding Business

Despite the pessimistic mood of many sellers, your personal freight forwarding business can be a high value acquisition target for ambitious entrepreneurs -- even in today's tough economy.

You need to get a good price for your personal freight forwarding business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
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If you're looking for a reason to wait to put your business on the market, you'll find it. Selling a personal freight forwarding business isn't easy, but we believe sellers can achieve their goals in any economic environment.

Handling Unexpected Outcomes

Every business seller dreams of a fast sale and a fat payday. But it's highly unlikely that the sale will meet all of your expectations, especially if your initial estimates were created without the benefit of a solid appraisal or market knowledge. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your personal freight forwarding business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.

Understanding Market Timing

Now may be the best time to sell a personal freight forwarding business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on personal freight forwarding businesses. Sooner or later, rates will rise, increasing the risk for prospective buyers of personal freight forwarding businesses. 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.

Valuation Methods

The methods for valuing a personal freight forwarding business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Finally, the market method determines the worth of your personal freight forwarding business based on the sales of similar businesses in your geographic area. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

More Exit Planning Articles

Ready to learn more? You may find these additional resources to be of interest.

Marketing a Personal Freight Forwarding Business

How To Choose An Investment Banker

Why Most Businesses Do Not Have Exit Plans

Pros and Cons of Using Business Brokers


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We always appreciate feedback from our readers. If you have any comments, suggestions, or questions about how to sell a personal freight forwarding business, we encourage you to get in touch with us today!


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