How to Sell My Trucking Company
If you are interested in selling a trucking company, our transportation business brokers at Synergy Business Brokers have everything it takes to find interested business buyers as fast as possible. With 20 years of experience in the freight hauling sector, Synergy Business Brokers has been providing support in the sales of client trucking companies with annual revenues of $700,000 to $70,000,000.
With the extensive research we do, we help to shortlist potential ideal clients for your trucking company sale. With our experienced management team, a vast customer base of approximately 30,000 potential buyers, and the most updated technology in place, we are ready to sell your trucking business to the perfect new owner at your desired sale price.
Contact Synergy Business Brokers to handle your asset sale professionally and effectively.
Hire a Trucking Business Broker
We understand the importance of confidentiality and respect your privacy when your trucking business is for sale. As the owner of the business, unless you intend to publicize it to your employees, they will never know the plan. Whether you are selling a Freight broker or forwarder, our transportation brokers vet the buyers diligently to offer you the ideal one for you. During every step of the sales process, your broker is your trusted advisor and will help you with due diligence, marketing, and finalizing the sale.
- Marketing: An M&A broker develops marketing materials that promote your company and can be used to market your business to potential buyers. Additionally, your broker will evaluate interested buyers by determining whether they have sufficient resources to fund the purchase. Then they will solicit offers.
- Due diligence: When an interested buyer makes an offer that you accept, they will move forward with the purchase by beginning the due diligence process and signing letter of intent documents. A due diligence review includes financial statements and contracts with customers, vendors, and employees. Your broker will keep the process on track and help with the review of the documents.
- Finalizing the sale: Your broker can negotiate the final price on your behalf and determine when and how you'll be paid the sales proceeds. Along with your attorney, your broker will address business transition issues and be there to make sure all required documents are signed during closing.
Having a broker for a trucking business sale is essential. At Synergy Business Brokers, we handle technical details and are committed to delivering the best results possible to sell your tractor-trailers and trucking business.
How to Sell a Trucking Company
When considering selling your trucking business, you are probably considering the options. You might be asking yourself whether you should sell your trucks and haulers to a competitor and then sell your property and business. But that isn't as profitable as selling your tractor-trailer hauling business as a whole.
Selling logistics companies with a business broker is the most effective way to sell your business for the highest asking price. We have experience selling a variety of transportation companies throughout the United States.
1. Increase Your Firm's Value
Potential buyers interested in purchasing a logistics company, transportation broker, or trucking business will need an accurate representation of the organization's future earnings. Many factors are used in the valuation of a company that specializes in mileage operation, such as its financial health and managerial experience.
After you calculate your company's value, you may want to try to increase the value before selling. Following the tips below to increase your business's value:
- Minimize liability: Your company is liable for shipping goods to your customers. You can minimize your liability by reducing shipping mistakes and accidents, which will allow you to retain more customers and reduce legal costs.
- Leverage technology: When you leverage technology effectively, you make your company more valuable. Customers can use apps to monitor each step of the logistics process, such as packing, security, warehousing, and transportation. Additionally, you can use technology to report on component parts and raw materials when they're on the way and track finished goods after they're shipped to customers. With these tools, your customers and buyer will be more confident in your company.
- Retain quality employees: To be successful, your company should retain quality employees. For example, if your warehouse workers and drivers follow workplace safety rules closely, it makes your company more valuable. A buyer can purchase your company and keep your reliable team members on staff to continue operating smoothly.
- Make capital investments: Your company should invest as a way to maintain your fleet of trucks. A buyer will want a firm that maintains its trucks and invests strategically to replace assets when necessary. If you delay capital expenditures, your buyer is likely to reduce the sale price to make up for the necessary asset purchases.
- Increase geographic reach: A business that operates in a wider geographic area has greater potential for growth. Areas you can add to your reach should be considered, such as a FedEx line haul to have a trucking business that ships across the nation that can serve larger companies. Regional and local businesses can be valuable but may not have the same prospects for growth.
- Maintain a good credit history: Maintaining a good credit history allows a buyer to finance the purchase of businesses later on with an SBA loan.
- Develop brand awareness and recurring revenue: A unique and known brand can make your business more valuable. Your customers want to buy from a company that is safe, reliable, and delivers products on time. With repeat customers, you can develop recurring revenue, which allows you to control marketing costs while increasing sales.
2. Prepare to Sell
Once you decide to sell, it's time to take some steps to prepare. Follow the tips below to prepare your company for sale:
- Be memorable: To sell, your business needs to stand out from the competition. Identify what makes your contract service areas unique. When your brand is recognizable, you can make your company memorable.
- Establish structure: Establishing structure by ensuring your supply chain is sustainable will allow your business to grow and make it more appealing to potential buyers.
- Hone your niche: You can also make your business stand out by focusing on a target market.
- Provide excellent customer service: Providing excellent customer service is key to retaining customers and getting a potential buyer interested in your company.
After you've developed a sellable business, we can research potential buyers and review competitors and similar companies. This helps to make a list of prospective buyers that we want to notify when you get an offer to create leverage with multiple bids.
3. Partner With a Trucking Broker
A business broker can help you with the entire process of the sale. From valuation to preparing for the sale, your broker can guide you through every step, providing you with helpful advice, finding potential buyers, helping you value your company, helping you with advice to grow the value of your company, and creating a sound timeline and exit strategy.
Where Should I Sell My Trucking Business?
A business in the transportation industry has more importance related to its location. You should sell your trucking company to buyers interested in your trucking service area. Where are interested buyers for trucking companies? Everywhere. As trucking increases and the need to deliver products to the customer becomes more and more important, trucking and transport companies benefit from having multiple locations.
This being said, you should sell your trucking business internationally, nationally, and locally. We find interested buyers in all locations. A distribution company located in New York might be interested in a trucking company in Pennsylvania or Tennessee to widen their distribution network. Trucking is needed throughout the United States. We have helped sell trucking businesses in a wide range of zip codes and counties.
How to Value a Trucking Company
An easy way to determine the market value of your trucking business is to hire a business broker. There are different ways you can calculate your trucking company's worth by plugging in simple transport numbers, net worth, net operating income, and annual income.
The only problem with this is so many valuable aspects of your trucking company are overlooked. Does your business model have an internal logistics team? Do you have business partnerships that result in ongoing trucking work and partnerships? The value of these adds to your profit margins and net worth. Several factors can impact your organization's valuation, including:
- Trend analysis: To value your business, we will examine the trends in your balance sheet and income statement. Buyers value companies that can control costs and increase sales and net income over time. If your business has been increasing equity and reducing capital expenditures and the opportunity to reduce assumable truck debt, your company may be more valuable.
- Cash flows: Your company should be able to generate cash flows, as business revenue may not produce cash inflows right away. One of the factors your business is valued on is a multiple of the cash flows.
- EBITDA: A strategy for measuring a company's profitability is earnings before interest, taxes, depreciation, and amortization (EBITDA). Trucking companies may be valued based on this measurement.
At Synergy Business Brokers, we are familiar with the valuation process and can guide you through every step of this process.
Synergy Business Brokers' M&A Solutions for the Trucking Industry
The trucking industry is critical to the economy by facilitating the transport of large amounts of raw materials and finished goods. This is often done from manufacturing facilities to retail distribution places. The advancements in technology, such as computer systems, the Internet, and satellite communication, have contributed to the significant improvements seen within the industry.
The journey to searching for an ideal buyer is not an easy one. Only industry professionals can provide you with the support and guidance to ensure that you manage to search for one successfully. We have been in the route operation mergers and acquisitions scene for many years and are committed to not charging our customers until a deal is successfully closed.
We have potential buyers for trucking companies and companies within the trucking industry, such as trailer manufacturers and distributors, trucking parts companies, and niche companies in the trucking industry. So whether you want to sell a refrigerated trucking company that specializes in food transportation, long-haul trucking, or freight brokerage, Synergy Business Brokers can help you meet your goals.
It takes a typical duration of six to 12 months to sell a company that operates linehaul runs. Depending on your firm, it can take longer or shorter. A strategy to enhance the benefits of your business will expedite the sale process. We also provide potential buyers with some tips on capitalizing on the opportunities you may have missed.
Why Should Your Trucking Company Work With Synergy Business Brokers?
We can help you with developing confidential marketing, finding the right buyers, minimizing marketing costs, negotiating, and obtaining seller financing. Furthermore, we ensure the legitimacy of potential buyers through screening processes. With our connections to more potential buyers, the journey to finding an ideal buyer for your firm is made more effective.
Last but not least, we value you as a client and want the very best for you and your business. We are committed to doing everything within our means to enhance your selling experience. You have enough to worry about with compliance standards, junk removal, endorsement agreements, and GA route composition.
If you have any inquiries about our service areas, or financial concerns about selling your business, and our trucking and transportation experience, feel free to schedule a confidential appointment with us or contact us through our business email to learn more.