The vast majority of limousine business owners who approach The Tenney Group about a possible sale are going through the process for the first time. Successful limousine business sales begin with education. As limousine business owners become more educated about their future business sale, they increase their chances of a successful outcome exponentially. The following bullet points address some of the basics of what The Tenney Group likes to call “Selling a Limousine Business 101.” Part 3 of 4.
9. How do you market a limousine, charter or tour business for sale?
The majority of general business brokers rely heavily on the internet to market the businesses they have for sale. The Tenney Group’s marketing approach is quite different. Although our database of industry buyers is the most comprehensive in the United States, our marketing approach targets the top 3-4 buyers that can financially justify paying you the most money. These contacts often do not identify themselves as buyers, are often uneducated in growth by acquisitions and are sometimes completely afraid of buying a limousine business. Regardless, through education, financial model demonstrations, and relationship building, The Tenney Group is able to convert these contacts into motivated buyers. This is how, in many cases, we inject hundreds of thousands of dollars into the deal for our clients that would otherwise not be there.
10. How do you protect confidentiality during a sale?
It is virtually impossible for business owners to protect their own confidentially if attempting to represent themselves in their limousine business sale. This is very dangerous and often a waste of time. Without establishing a controlled environment to conduct confidential and meaningful transaction discussions, it is impossible for a buyer and seller to move beyond “hypothetical.” To protect our client’s confidentiality, The Tenney Group requires our clients to pre-approve all marketing material before sharing it with the public. We require a signed confidentiality agreement and proof of funds from a buyer before discussing any specifics about our client’s business. Additionally, we share information incrementally based on a continued demonstration of interest in the business.
11. Telling employees you are selling?
Successful limousine business sales depend on a stable and controlled sale environment. Voluntarily sharing information about your sale with your employees destabilizes that environment and can put the entire company at risk. Employees are often the sources for breeches in confidentiality. It is understandable to try to protect your employees. Telling them that you are selling, in many cases, does the exact opposite of that. However you choose to address this issue in your sale, make sure you examine all options carefully alongside an industry transaction specialist.
12. What is due diligence?
Prior to purchasing your limousine business, a buyer will conduct a thorough investigation to ensure that what you have represented about your business’ operations and finances match reality. This is called due diligence. The areas that may be addressed through due diligence may include but not be limited to: articles of corporation, company minutes, organizational chart, certificate of good standing, list of shareholders, financials, real estate, physical assets, employees and employee benefits, licenses and permits, material contracts, customer information, litigation, and insurance coverage.