Dire economic forecasts have forced many transportation contract services business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
(article continues below)
Despite the overall mood of the marketplace, transportation contract services businesses are still an attractive investment, especially when sellers have invested time and energy in preparing their companies for a sale.
From the day they decide to sell their company, the question that plagues many owners is how long it will take to sell their transportation contract services business. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your transportation contract services business, you'll need to invest as much as a year in preparing it for prospective buyers. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.
Leveraging External Resources
At some point, you're going to need help selling your transportation contract services business. Although it's wise to recruit a business broker, brokerage isn't your only concern. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The benefit of soliciting outside assistance early is that seemingly small decisions now can have big consequences later. By consulting professionals throughout the sale of your transportation contract services business, you can avoid painful tax and legal complications both before and after closing.
Sweetening the Deal
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your transportation contract services business. Concessions can consist of non-cash as well as cash incentives. In fact, many concessions have little or no financial impact, but go a long way toward making the deal more palatable to young entrepreneurs. A limited amount of training and mentoring may seem inconsequential to you, but to a young transportation contract services business owner, they can be critical launching points for their ownership journey.
Ready to learn more? You may find these additional resources to be of interest.
If you plan on opening a transportation contract services business, these guides will help you get started:
If you consider transportation contract services businesses to be sales prospects, this isn't the best resource for you on our site. Try these useful resources instead:
If you are eager to get business succession tips for a different industry, try our directory of exit planning guides below.