Heading into 2021 the demand for great businesses has increased drastically. In the second half of 2020, enquiry levels accelerated to exceed the previous year. This is because currently in the business sales market there are three key demand factors at play: returning expats, newly unemployed looking to business ownership to replicate lost income, and low interest rates. All these factors all apply to business sales and the transport industry. If you have ever considered selling your transport business, now is a perfect time. Market multiples are increasing as well as the average business price. Therefore, now is the optimal time to get the right price for the transport business you’ve built.
However, selling a business is not a straightforward task. It’s complex, takes a lot of advanced planning, and requires professional help from an ABC Business Broker. Most business owners are so busy running the day-to-day operations of their business that they do not give ample time to the future sale of their business. Before selling a business there are many factors to consider and good preparation will maximise the return to the business owner.
Below we’ve put some tips together to help you get your transport business in optimal shape for sale.
- Spruce up the physical appearance of your business and the assets. First impressions count! Make sure your trucks are polished, serviced, and ready to go.
- Have accurate, up-to-date, and verifiable trading accounts for the last two to three years.
- Reduce the reliance, if possible, on one or two large customers to spread your risk.
- Write an operations manual and standardise the procedures.
- Investigate the transferability of the lease and any key supplier agreements in place.
- If possible, re-negotiate any key supplier agreements on more favourable terms.
- Ensure the plant, equipment and fleet are well maintained and operating well.
- Identify the key staff and incentivise them.
- Take steps to eliminate any non-performing or unnecessary staff.
- Careful planning will generate the business owner the most value and expedite the sale.
Finally, working with an experienced Transport Specialist business broker will also add value and most importantly protect the confidentiality of the business owner during the sale process. Here at ABC Business Sales we have multiple Transport Specialist Trusted Advisors that are willing and able to invest time to assist Transport business owners, without obligation, when they are considering the sale of their business.
For an obligation free appraisal or general advice please contact:
Steve Smith (Auckland & Northland) | steve.smith@abcbusiness.co.nz | 029 838 2671
Scott Laurence (Central North Island) | scottl@abcbusiness.co.nz | 027 473 5425
Gerard Dunne (Lower North Island) | gerard@abcbusiness.co.nz | 027 220 8277
Derek Lough (South Island) | derekl@abcbusiness.co.nz | 021 151 6241