Humans are highly competitive by nature. If you need proof, just look at eBay. When there is only one buyer interested in an item, the item sells for its asking price. But with the right kind of exposure, eBay sellers can capture the attention of several buyers, who are instinctually compelled to outdo each other as closing approaches – often leading to an outright bidding war. Bidding wars occur in the limo industry as well. Recently, The Tenney Group put a limousine business for sale in Washington D.C. that attracted over a dozen offers from four different buyers over the course of a month.
How the Bidding War Works
When their competitive drive kicks in, multiple bidders become willing to pay more than they might normally feel comfortable offering. In addition, the excitement and rush of the bidding process encourages buyers to act quickly rather than drag their feet. It also increases the perceived value of a limo business for sale. If you’re hoping to maximize your sales price, make sure you have a broker and marketing plan that help create the ideal competitive environment.
Reaching More Buyers
You can’t create a bidding war with only one bidder. If you want to drive up your price, you need a marketing approach that will increase your business’s exposure to deep-pocketed investors. For most sellers, it’s not enough to list a business on a buy-sell website and passively wait for months or years for buyers to come out of the woodwork. Instead, you need to reach out to buyers. The most successful chauffeur business sales are made when the most advantageous buyers are identified and targeted. Limo business brokers have the insight and industry contacts to track down investors hungry for the opportunities presented by your limo company.
Find the Right Broker
General business brokers may be practiced at listing businesses and closing sales, but they are not familiar with the details that set the luxury transportation business apart from other industries. A limo business broker has the wisdom to recognize different types of investors, from financial buyers looking to rev up profits to strategic buyers seeking synergistic opportunities such as an improved fleet, a location in an area primed for growth, or the marketing advantages offered by a trusted brand name. With so many competitors in the limousine business, it is crucial that a broker understands the importance of confidentiality and stability. Limousine business brokers are masters at assertively marketing businesses without publicly identifying the fact that they’re for sale to customers, employees, or the local competition – all scenarios that could negatively impact interest in your limo service for sale. When it comes to luring and exciting competitive buyers, general business brokers just can’t compete.