The price you ask for doesn’t have to be the price you settle for when you have a limo business for sale. Though your business valuation is determined by your assets and liabilities, your real value varies depending on what your company is worth to buyers. By preparing for a sale strategically, chauffeur business owners may be able to increase their ultimate payout.
1. Get Educated
Taking your limousine business to the market before you know the facts surrounding the sale is like taking a shot in the dark. Sure, you might be successful – but it’s very, very unlikely. Business owners need to know how to determine the value of a limo company accurately in order to set an asking price that is fair to both buyer and seller. They need to be aware of current and expected market conditions so that the sale can be optimally timed to appeal to the right buyers. Maybe most importantly, owners should have a plan for handling the sales process. Often times, owners get so wrapped up in the difficulties of managing a sale that company operations, and thus value, are dragged down in the process. A team of industry experts can handle the sale for you, so you can focus on keeping your business up and running.
2. Purchase Carefully
One of the easiest ways to increase value is to make re-investments that appeal to the people most likely to be interested in your business. But as with home improvements made prior to a sale, not every investment yields the same returns. Whether you repaint your cabinets or overhaul your entire kitchen, you are going to increase visual appeal to buyers. However, you are a lot more likely to recoup costs – and avoid lasting debt – with the simple paint job. Likewise, limo business investors may not be interested in purchasing a business with the latest and greatest vehicles, especially in a dicey economy. Remember, strategic investors often buy businesses as a cheaper solution to purchasing equipment independently. Smaller changes, such as tuning up existing vehicles, upgrading computer systems, or streamlining operations, are more likely to pique their interest and allow you to recover costs during a sale. If you are even thinking about putting your limo company for sale, think carefully before buying new equipment.
3. Create a Bidding War
Too much competition in the marketplace can be a bad thing. When you have a limousine business for sale, however, competition is your friend. Multiple offers have a knack for driving up a sales price. For potential buyers, the knowledge that other interested parties are involved serves to reinforce value and spark motivation. For the business owner, a larger pool of investors increases the chances of selling to a qualified buyer. Unfortunately, most businesses for sale will never result in bidding wars because they are not being effectively marketed to the right buyers. Creating competition requires reaching beyond the local market. An industry specialized business broker can help you reach the right people so that you can reach the right price.