If you’re a limo business owner, you know there’s no escaping the rising costs of insurance. But while coughing up cash for pricey limo insurance renewals may be a necessary evil of doing business, it can become a real problem when you’re preparing to sell your company. The question of who will renew your insurance premium can influence when and if you are able to make a sale.
Selling your limo business is kind of like selling a personal vehicle, but on a much larger scale. Obviously you are legally obligated to maintain insurance in order to keep driving, but renewing your annual policy a month before your vehicle (or business) changes hands is a waste of money. Because insurance is such a big part of the transportation business, it’s common for business owners to plan a sale around an insurance renewal. Ideally, your goal would be to sell your company shortly before your renewal is required. That way, you can get your money’s worth from your last investment in charter bus insurance, without having to make a new investment that you won’t be around to see a return on. However, at the end of the day, the best time to sell is almost always when a buyer is ready to hand over the cash. You can’t count on a motivated buyer to adjust their strategic plans and purchase timetable around this issue.
It’s impossible to predict when your business will sell. Some deals happen in months, others in years, and some don’t happen at all. The good news is that a little advance planning can make for a more accurate estimation and maybe even a speedier sale. Whether you’re seriously considering selling your company or just speculating about the possibility, it never hurts to get your ducks in a row. Getting an accurate business valuation is not only helpful for potential buyers, it can also identify strengths and weaknesses that you can play up and improve in the meantime. The better you understand your company’s hidden value, the easier it will be to express that value – and justify your asking price – to a possible buyer.
Third Party Support
When it comes to selling your business within a given timeframe, an industry specialist broker can be your best ally. Not only can an experienced professional identify untapped value, but he or she can also help you find untapped buyers. While other businesses are waiting for buyers to find them in them on the internet, your broker may be targeting and proactively contacting businesses that are most likely to benefit from owning your company. When the right seller is connected with the right buyer, sales tend to happen more quickly and smoothly. One of the advantages of selling your business is that someone else can worry about the costs and stresses of running a company – like paying for limo insurance renewals – while you can focus on enjoying the rewards of your years of hard work.