When you’re mentally prepared to hand over the reins of your bus business, the last thing on your mind is probably investing more time in your company – especially if that time is unpaid. Yet agreeing to provide owner training for a designated period of time after a sale can provide benefits for the seller as well as for the buyer. By increasing the odds of a smooth and successful transition, chauffeur business owners can often boost buyer interest and sale price.
1. A Smoother Transition
It’s rare for a buyer to be able to hit the ground running without some assistance from the seller. Many times, a buyer will have experience in the limo or bus industry, but no knowledge of how to manage a business. Contrarily, an entrepreneur may be well-versed in business ownership, but not with the transportation industry. Even an experienced business owner may not be familiar with your company’s policies and procedures, management structure, or customer service. By helping a buyer become comfortable with daily operations, a seller reduces the learning curve and increases the speed at which the new owner can get down to business after buying a limousine or bus company.
2. Increased Confidence
Many buyers fear that when an owner leaves the business, customers and employees will follow suit. When buyer and seller work together in the weeks following a sale, it provides a show of solidarity that can diffuse tensions and assuage fears during the most critical time of the transition. For employees, seeing a former boss standing behind a new owner can boost confidence in the new direction of the company – and in the future of their jobs. For clients, knowing that a new owner values the experiences and business practices of the seller provides reassurance that the new leadership will continue to prioritize the same quality service.
3. Enhanced Value
Purchasing a limo or bus company for sale requires an enormous upfront investment and a whole lot of faith. Understandably, business buyers will want to do everything possible to minimize risk. By agreeing to provide advice, training, and support to a new owner, sellers increase their company’s value – and, potentially, their sale price. Ultimately, the amount of training required will depend on the complexity of the market and business operations. If a new owner wants the seller to stay on for an extended period of time, terms – including consulting fees – should be including in the purchase agreement. An experienced limo business broker can help ensure all terms of the sale package are well-structured. However owner training is conducted, it has the potential to pay off for all parties involved.