If you are thinking about selling your transportation business, you may be wondering when the right time of the year to sell is. Generally, business brokers have steady sales throughout the entire year. However, the summer months can become a time when buyers and sellers can quickly find and close on deals.
Brokers have attributed many reasons to why people tend to enter the buying or selling market during the summer months. Some reasons include:
During the summer, many business owners begin to realize the impact that owning a transportation business has on their family. Because of the high demands to run a successful business, the owner may be missing out on school recitals,picnics, or family trips. They may realize that they are ready for a change in their professional and personal relationships. By reevaluating their priorities, many owners find that it is time for them to sell.
Most businesses see a slow down during the summer months. This gives owners the time to look at ways to work on and improve their existing companies. They may consider purchasing more inventory and equipment. They may even decide to expand their company. When owners are given the chance to fully look at how buying can change their profit outlook, a dramatic increase in buyer acquisitions begins.
Moving is Easier
For many, buying a transportation business may mean relocating. Usually the new owner is not relocating just himself, but also a wife and children. Moving during the winter and school year can often be a difficult transition for children. However, starting a new school in the fall may not seem as daunting. Buyers don’t want to add any unnecessary stress on their family members. They will push harder to secure a deal faster.
Companies may choose to lay off high power employees during the summer months. Also, many employees are retiring during the summer. Business brokers have found that these laid off employees or retirees are used to a lifestyle that they often cannot give up. Many times, they can become the best types of buyers. Their age often makes them unmarketable to other companies. Owning their own business becomes their best option. These individuals are usually very motivated and qualified which makes for a more pleasurable sale process.
Getting a new owner can often be a very difficult transition for many employees. In the summer, business does seem to slow down. This will allow the new owner more time to learn and fully understand the company. Employees will also be more readily available. This will give them and the owner the opportunity to get acquainted. It may even open up the chance for discussions and company input. Employees may have new ideas or fresh insight for the new owner. Choosing to take over a business in the slower, summer months often allows the new owner valuable time learning the company and its employees.
As the summer months begin to show a decrease in revenue, some employees are forced to reevaluate their business. They may have no choice but to close the doors to avoid losing any more money. They may reevaluate exactly what will be expected of them in the upcoming year to successfully manage and run the business. They may find that they are not up to the challenge and are looking for a way out. These types of situations cause a spike in transportation business sales.
Transportation business brokers and intermediaries often see a high demand for selling or buying a company for many of these reasons. If you are interested in buying or selling, the summer months will offer you many advantages to secure a deal faster and reach a fair price. Getting in touch with an experienced business broker is often the first step to finding buyers or sellers that you may not otherwise have known about.