Heading into 2025 the demand for good businesses has increased significantly. In the second half of 2024, inquiry levels have accelerated to exceed the previous years. This is due to three key demand factors at play: existing operators looking to expand through acquisition, newly unemployed looking for business ownership, and interest rates starting to move downward. All these factors apply to business sales. If you have considered selling your transport business, now is a perfect time. Market multiples being achieved are solid and interest from transport and logistics buyers is strong. Therefore, now is the optimal time to get the best result for your years of hard work.
However, selling a business is not a straightforward task. It’s complex, takes a lot of advanced planning, and requires professional help from an experienced ABC Business Broker. Before selling a business there are many factors to consider and strategic preparation will maximise the return to the business owner.
Here are several tips 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 Transport Specialist brokers who 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 and/or advice please contact:
Steve Smith (Auckland & Northland) | steve.smith@abcbusiness.co.nz | 029 838 2671
Murray Kidd (Bay of Plenty) | murrayk@abcbusiness.co.nz | 021 368 441
Mark Talbot (Christchurch) | mark.talbot@abcbusiness.co.nz | 027 204 3625