A transportation business owner had passed away unexpectedly and left his wife and children to deal with the estate. Because they knew little to nothing about his business, they were very overwhelmed and confused. The wife questioned how much to sell for, when to sell, and to whom to sell to. Because her husband didn’t leave a detailed plan of intentions, she made some uninformed decisions that ended up hurting the sale.
Situations like this are very familiar in the transportation industry. In the event that the owner passes away, the business can end up decreasing in value very fast. Not being ready for the unexpected, including a death, can create harsh consequences on the transportation company. In the event that you would need to expedite a quick business transaction, there are three key tips that can help you get prepared.
The owner must have an understanding and reasonable expectations as to what his/her family members expect out of the business. Although their spouse or children may be working for the company now, their future professional goals may not be this. Keeping an honest communication open with your family members will ensure that everyone understands the professional capabilities to continue running the business and if they want to participate. It is important for the business owner to understand that their child may not have the same goals or even want to pursue this career. With this open communication, you can be sure that you know exactly where each member of your family stands regarding the transportation business in the event of an unexpected tragedy.
Learn about the process that the sale will go through now. Be sure that your family is also educated on this. By having any financial and business documents organized and prepared now, it will help lessen the amount of stress and worry that your family will inherit. Look for other industry professionals and intermediaries that are experienced in the transportation business. By seeking advice from a third party intermediary now you can ensure that your family will know exactly how to have a quick and fair transaction.
Now that you have spent a great deal of time learning, researching, and preparing for any unexpected events, record it all down. Have it organized and written out for your family members to look to. If you neglect to write it down, all that information will be lost. In the event of a tragedy, your family members will most likely already feel overwhelmed and confused. By having a detailed plan in front of them, they will know exactly what is expected of them.
By preparing for any unexpected situations, you are ensuring that your family not be faced with the overwhelming and confusing task of selling your transportation business. You can guarantee that all of your research and interactions with an intermediary were well worth it.