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 4 of 4.
13. What if I have already identified a buyer for my business?
This is a great question with a simple answer. Identifying a likely buyer for your business is often the easiest part of the business sale process. You shouldn’t pay for professional help unless that professional brings meaningful and measurable value to your sale process. With a track record of over 160 successful transportation business sales, The Tenney Group does what general business brokers, industry consultants, and business owners themselves can not do. We create a bidding war between multiple buyers from all over the country, bridge huge valuation gaps between buyers and sellers, stabilize the fragile relationship between buyer and seller all the way to the closing table, secure financing for business sales in a highly misunderstood industry, protect our client’s confidentiality from competitors, enhance the value of client’s business during the sale process through our industry expertise, structure a sale that limits tax exposure for our clients, while removing up to 3-4 months from the average sale time.
14. Why business owners choose “not” to sell alone.
The biggest reason why limousine business owners choose not to sell their companies alone is because they cannot afford to be distracted from their primary business. Selling is a full time job. Other reasons include the inability to protect their confidentiality, not understanding how to navigate through an array of complex issues in the sale process, the desire to tap into a professional’s network of buyers, the desire to get the most money out of a sale, the desire to avoid costly mistakes, and because they can not afford to fail in their selling effort.
15. What qualifies a firm or individual to sell your limousine business?
That is really up the seller. Usually sellers qualify a professional by their industry experience, historical track record and recent transaction successes. Because anyone can be a business broker, it is important to evaluate a professional’s or firm’s commitment to their profession based on being a member of the International Business Brokers Association (IBBA) and also by the designations & the recognition they earned in their professional field. The IBBA estimates there could be 20,000 to 30,000 business brokers working part or full time across the country. Of that number, approximately 2,500 are members of the IBBA. Of the 2,500 members approximately 700 have distinguished themselves from the rest of the business brokerage community by earning the Certified Business Intermediary designation (CBI). Of the 700 CBI’s, only one brokerage firm specializes exclusively in the transportation industry, The Tenney Group.
16. How do business brokers and transaction specialists earn their fees?
We can’t speak for other business brokers or industry consultants. The Tenney Group’s mission is to make your limousine business sale as rewarding as possible at a time that is right for you. We earn our fees by producing superior results as proven by our industry track record. Below is a sample of what is typically involved on our end:
• The Tenney Group typically invests 500-1000 man hours to get a deal done.
• A customized marketing plan that involves repackaging your business to make it palatable to the greatest number of buyers in the market.
• Recasting your financials and formulating a variety of financial and cash flow models used in presentations to strategic buyers. *This is how The Tenney Group is able to communicate the value of your limousine business in ways no other professional possibly can.
• Spending up to 2- 5 months educating your “best” buyers about the short and long term cash flow benefits of acquiring of your business while expanding the offers they have placed on your business.
• Screening and qualifying buyers while requiring proof of funds before sharing any of our client’s sensitive information.
• Educating our clients throughout the process in order to stabilize the emotional element of the transaction.
• Structuring a deal that creatively allows both the buyer and seller to accomplish their respective goals.
• Leading and guiding the team of transactional professionals that may play a role in your sale while educating them about the unique aspects of business sales in this industry: accountants, attorneys, tax specialists, etc.
• Helping the buyer secure financing. Lenders do not understand the limousine industry. It takes an industry professional to sell them on the value of your business. This can take 90-120 days after the buyer and seller are agreed to the sale price. If the buyer can not get funding, there is no deal.
• Ensuring a smooth transition following the transaction for all parties.
• Though The Tenney Group’s professional fees are consistent with that of the business brokerage community, our sale completion rate is over 4x the industry average. We have also completed limousine business sales 3 to 4 months faster than the industry average.
The 16 lessons in this four part series do not represent everything you need to know to sell your limousine business. They merely represent a handful of the most common misunderstood aspects of selling. Education, preparation, and cooperation with experienced industry professionals will get you on a path to making your limousine business sale a success. If you are considering a sale or have more questions, please reach out The Tenney Group’s team of professionals today.