In the fragmented luxury transport industry, it seems that every city has its share of limousine businesses. But a handful of markets stand out from the rest. Take the following five for example:
• New York, NY
• Houston, TX
• Stamford, CT
• San Francisco, CA
• Washington, D.C.
What makes these markets so special? Common characteristics like a history of demand, a growing customer base, and an ideal location mean these regions – and other markets that share the same factors – are ripe for the picking. For owners interested in putting a limo business for sale, the following traits indicate that a market contains buyers willing to pay top dollar.
Immediate Buyer Demand
For the average business owner, it can take several months or longer to locate a prospective buyer. But the hottest limousine service locations have buyers lined up right this minute. If you’re planning to put a limo business up for sale in Washington D.C., there may be investors waiting for you before you even list your limo company on the market. As with real estate, competition makes for a seller’s market. When demand is high, an experienced limo business broker has the ability to identify qualified buyers and encourage those buyers to bid against one another. The result is often a better buyer at a better price.
Historical Market Demand
All buyers are taking a gamble when they purchase a new business. Since there is no way to guarantee that demand will exist for a service, all that investors can do is look to the past for guidance. Each of the locales in this list is a high-level transportation hub that has long received much of the nation’s business travel traffic. Regions with historically high market demand are considered less risky than emerging markets. For this peace of mind, buyers of limo companies for sale are often willing to shell out a higher price.
Current Customer Demand
A big consideration when buying a limousine business is whether existing customers will stick around and new customers will become available. In addition to being centered on high-traffic metropolitan areas, most of the top markets for selling a limousine business are in close proximity to expanding suburbs. As housing developments, schools, churches, and community centers are erected, the need for transportation to airports, clubs, weddings, proms, and other locations and special events will grow exponentially. The Houston region, for instance, added approximately one million residents in the first decade of the new century, and is expected to rank fifth in the nation in terms of population growth by 2030, according to Woods & Poole Economics. Entrepreneurial visionaries know that entering the right markets and building a brand today is the key to commanding a successful chunk of a region’s market share in the future.