Any business broker with enough experience has seen his or her fair share of deals unnecessarily fall apart. A deal may look great on paper but not materialize to fit the buyer’s bottom line or the seller’s financial requirements. Many times these types of situations can be explained by a lack of what we call “fair-mindedness” on the part of either the seller, buyer, or both.
Fair-mindedness allows the seller and buyer to come away from a deal having had all their needs and wants recognized and considered. Especially in a tough economic climate, buyers sometimes overreach and fail to take into account the basic needs and concerns of the seller. Buyers may try to take advantage of sellers who are desperate to offload their companies, or may walk away from deals after making unrealistic or unfair demands of the seller.
Brokers should have no qualms about buyers trying to secure the best deal possible, yet it seems too many good deals get scrapped when buyers fail or refuse to acknowledge the other party’s basic requirements. This does nothing to benefit either party when a deficit in fair-mindedness causes an otherwise potentially advantageous deal to fall through. Sellers become discouraged from further attempts at selling, and buyers pass up real opportunities to acquire potentially valuable companies.
Being fair-minded during an acquisition is also the smart thing to do from a strictly business or management perspective. When an acquisition is completed, the seller will still play a large role in the transition of the company. Buyers should be wary of acting in a way that may harm valuable client relationships, prevent service commitments from continuing, threaten employee morale, and more. Consider the fact that the seller probably has developed close personal relationships with suppliers, vendors, employees and others in your industry that will continue after the deal is finalized.
The seller has enormous influence over the relative success or failure of your company post-acquisition. Rather than executing a deal where both parties are left irritated or bitter, buyers should work closely with the seller to ensure the continued operation of the company. A motivated seller can be a tremendous asset to a new owner after an acquisition is finalized.
Business brokers can act as an intermediary between buyer and seller to ensure that both sides’ issues and concerns are considered and met to the fullest extent possible. Either party may not recognize particular concessions or gestures which could leave both buyer and seller in a better position than they anticipated. Brokering a business sale which accommodates the needs of all involved is one key the successful transition after a sale is completed.
When both buyer and seller strive to take a fair-minded approach to an acquisition of a transportation company, the seller can rest assured he or she got the best deal possible, while the new owner can more effectively maximize the future value of the company.
The Tenney Group has been facilitating transactions of transportation businesses for over thirty-five years, specializing in business sales, mergers, acquisitions, and post-transaction services. We have experience dealing with a wide variety of companies in the ground transportation industry, including trucking, freight hauling, ambulance, school bus, and limousine businesses. Contact Spencer Tenney at the Tenney Group for expert assistance when buying or selling a transportation company.