Sometimes business owners are our own worst enemies. It’s easy to get caught up in the flow of day-to-day operations and forget to occasionally step back and take an objective look at the business. Keeping your nose to the grindstone may keep cash flowing, but when it comes time to put your limo company for sale, it can backfire. Here are some of the most common business owner mistakes – and how they may be shaving thousands or millions off your sale price.
A messy business is like a messy desk. You may know how to find what you need, but no one else will. When you’re trying to justify your asking price to a buyer, you need clear evidence of your company’s value. If it’s impossible for an interested party to deduce business expenses, sales data, and other important financial information, it’s also impossible for them to gauge how successful they’ll be with your business. Because buying your company will be a gamble, any investor brave enough to make an offer on your limo service for sale will name a price well below market value.
2. Lack of Planning
There comes a day when every business will either change hands or close its doors. Yet many business owners leave exit planning until the last minute. Selling a limo business is not as easy as selling a car or home. Everything from the way your company is structured to the age of your fleet vehicles impacts value. Planning in advance provides the time necessary to implement value-enhancing changes. Meanwhile, if a life event or economic change requires you to put your business for sale earlier than anticipated, you’ll be ready.
3. Failure to Understand Buyers
A company doesn’t have to be perfect to attract a buyer. Even if your chauffeur business isn’t churning out large profits, it may have appeal to buyers who are interested in strategic gains, such as an expanded customer base or a more diversified selection of vehicles. Value is ultimately what a buyer is willing to pay. If you don’t recognize what your company has to offer to different types of buyers, you’re missing the opportunity to market your business to them.
It’s called the negotiation process for a reason. Showing up to the bargaining table with one outcome in mind usually does more harm than good. If your best buyer gets frustrated and throws in the towel, you may have lost a once-in-a-lifetime opportunity. The most satisfying deals involve some give-and-take on both sides. Making just a few minor concessions in order to retain your ideal buyer can lead to a price much higher than what is often available from the next best offer.
5. Going It Alone
One of the most frequent ways business owners hurt value is simply by putting a limousine company for sale without professional guidance. It’s hard enough to run a business as it is. Running a business while also attempting to attract buyers and structure a sale is next to impossible. It’s common for business owners to experience disrupted operations, compromised confidentiality, and a decline in value while under the pressure of selling a business independently. Limo brokers have the industry experience to handle a transaction smoothly and efficiently, minimizing interference and maximizing value.