Buying a limousine business is stressful enough for a buyer when everything goes right. If investors run into obstacles in the beginning, you can bet they won’t stick around to see if the situation improves. When hundreds of thousands of dollars are on the line, qualified buyers can change their minds in a heartbeat. Here are some of the biggest buyer turnoffs and how to avoid them when putting your limo business for sale.
Running a business takes a lot of time and energy. So does selling a business. As you can imagine, some business owners run into trouble when they try to do both at the same time. Buyers are thinking of making what will perhaps be the biggest investment of their life. Understandably, they’re going to want to ask questions, view documents, and discuss terms. If you’re always tied up with work, buyers are going to get tired of playing phone tag – and of your chauffeur business. Hiring a limo business broker to work directly with buyers provides interested investors with the attention they need, while allowing you to devote your attentions to your company.
Buying a business requires an enormous upfront investment. When business owners are unwilling to budge on terms, it can make buyers feel as if they are carrying all of the risk. As the seller, it’s to your advantage to show buyers you’re willing to make some concessions, even if those concessions are small. This can mean offering seller financing, agreeing to provide consulting services for a period of time, or selling some of your assets. By doing so, you indicate that you have faith in your company – and the buyer’s future role in it.
Setting a price is the most crucial, and confusing, step of selling a limo business. If your price is too high, serious buyers won’t even look at your company. Buyers need to know that a price is supported by value. If they’re going to pour money into the purchase of a limo company for sale, they need to be able to count on earning a return on their investment. Getting a professional limo business valuation increases your chances of finding an accurate price, adds credibility to that price, and reduces the likelihood of intense price negotiations when a buyer does pursue a deal.
You’d never dream of applying for a job without a resume or of trying to secure a loan without a business plan. Yet some sellers put their businesses on the market without preparing important documents first. The first thing buyers want to see is proof that your business will provide them with cash flow. Without evidence, how do they know you’re not just wasting their time? Before you go to market, get ready by meeting with your CPA, digging up any relevant documents, recasting financials, and organizing your records.
Just like selling a service, selling a limousine business requires appealing to the needs of your customers – in this case, your prospective buyers. A professional limo business broker has the connections to pinpoint the individuals and entities most likely to benefit from buying your business – and the experience to capture their interest.