If you are decided to sell trucking company, you need to emphasize on a couple of key factors that govern the worth of your business. Ahead of planning to sell trucking company you should decide whether to sell entire assets of the company which includes real estates, if applicable, maintenance infrastructure apart from the fleet. The next critical step for you would be to have the assets appraised by an approved appraiser in your region.
Preparations to Sell Trucking Company
In addition to asset’s worth it is essential that essential to factor in the audit reports of at least previous five years along with projections for the future. This forms the foundation for compiling the selling price.
Secondary line of preparations includes upkeep and renewal of relevant licenses of your business and trucks. Besides, decide to what extent you are prepared to negotiate and what assistance or sops you would like to offer the buyer.
Planning To Sell Trucking Company
First off, involve your accountant at every critical step. This helps you check if the sale is drifting away from worth based paradigm to asset based one. Remember, the asset based paradigm doesn’t take into account the future earning potential which benefits the buyer; however, if your company is not making profit in previous years, you have not many choices.
Steps to Sell Trucking Company
Steps to sell trucking company are not very specific excluding a few factors, such as selling to your peers and higher depreciation factors unlike selling real estate. Here are a few steps specific to sell trucking company that stand as guidelines.
1. Instead of directly approaching prospective buyers, it is prudent on your part to spread the word that you want to sell trucking company in the industry circle. As experience tells, this kicks up speculative valuation and sort of insulates you from having to hard defend your sale price.
2. Float announcements that you want to sell trucking company in local newspapers and/or internet. Screen the purchase offers based on criteria like offer, buyer’s reputation and ability to manage additional fleet etc.
3. Setup negotiations with screened buyers but take care not to give in to discount demands. Sticking to your price (albeit with a little flexibility) is a proven strategy which hardly backfires.
4. Be specific with the buyers about your obligations, whatever they are, on re-registration responsibilities and its cost, typically if you want to sell trucking company to an interstate buyer.
5. Be practical over payment terms, higher the down payment better but be judgmental based on your instincts.
Finally, it is prudent not to sell trucking company to an unknown party even if the offer is lucrative.
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