Focusing on the finish line of a transportation business sale is a fine ambition. However, developing tunnel vision in the process will only hurt the transaction. The minutia of finances, paperwork and loads of stress may overwhelm an individual to distraction. Sacrificing a positive post sale transition just to end the deal will cost the business. Unexpected taxes and drawn out new owner discussions may have some running for the door but these unpleasant circumstances are avoidable. Planning for a positive post sale transition throughout the transaction will allow the seller a graceful and successful departure.
Take A Closer Look
The asking price of a transportation business is rarely the full purchase price. Even then, the money changing hands gets siphoned off to Uncle Sam faster then most sellers can blink. Taxes will take a big chunk from the purchase price depending on how they are handled. Some taxes com from assets like income, capital gain or possibly a loss. Hire a transaction tax specialist or do some research. When the taxes have been calculated look at the asking price then discount it through estimated obligation towards the seller. Does the end amount satisfy post-sale goals such as retirement or reinvestment? If the number is too low, the time for adjustments has come. Start enhancing value by trimming the business of unneeded processes and upgrading to improve revenue. Consult a financial advisor once the sale is underway. They will help repurpose the purchase price so it lasts longer after everything is said and done.
Plan A Personal Transition Period
Ownership change for a transportation business is a sensitive matter. Walking away from the business after receiving payment is not acceptable in most cases. Customer relationships and new owner training are both incredibly important to the success of the business. The continued presence of the seller will reassure clients and employees alike that the new owner legitimately cares about the business. Regardless the qualms that appear during the transaction, a smooth transition depends on calm individuals working together for the business. Lay out the terms for transition within the purchase agreement to avoid any miscommunication. The terms could involve long-term consultation for a fee or a few days assistance. The terms should fit the needs of the individuals and company.
What Comes Next
During the long and drawn out process of a sale, the seller could loose sight of end goals. Informed life decisions come from knowledge on the situation. Figure out the implications of the coming transition from owner to seller to sold. This advice is not just for those looking to sell. A proper exit strategy can improve unexpected circumstances. After all the hours of hard work an owner puts into a business, they should be able to walk away without financial punishment. Plan for the inevitable before it happens to garner the best possible profit.