“I’ve been very interested in selling my charter/tour business, but is anyone out there buying?”
Seeing as how The Tenney Group has sold seven transportation businesses within the last five months, it’s safe to assume that there are many interested people looking to buy.
In today’s market, there are three different groups of buyers for charter, tour, and/or school bus companies. Here’s a rundown of the current state of the market and each of the three groups:
Group 1: Professionals ready to leave the corporate world.
Many in this group have been making a lot of money for other people for a long time and are ready to be their own boss. Others have faced layoffs and consider owning a business as a way to earn a similar income.
Group 2: Local or regional competitors.
Buyers in this group can sometimes be hesitant to acquire other companies and need a little nudge to move forward. Oftentimes, I’ll hear, “I already have enough problems. Why would I want theirs?” These preconceived notions can frequently be overcome, especially when the buyer realizes the potential synergy and cash flow opportunities that come with acquiring or merging with a competitor. Once this is recognized, they usually become motivated buyers.
Group 3: Existing tour, charter, and school bus companies from around the country.
These strategic buyers may see potential in your transportation business that could be very valuable to them. You may hold accounts which they are pursuing, or value your location in relation to another of their competitor’s strategic plans for expansion. There may be synergistic qualities of your company that can be missed by either you or the buyer all potential business opportunities aren’t extensively explored.
The market for your transportation business is probably stronger than you think, especially if you hire a business broker to expand your reach and promote your company. More exposure across a wider segment of the country can greatly increase the potential for a favorable deal.
Basically, you may not recognize how attractive your company can be to potential buyers. Prospective buyers take many things into consideration, some of which may not have occurred to you. Whatever you do, don’t assume that your company isn’t worth the buyer’s attention. Consult with industry professionals who have experience in the field for help understanding your company’s prospects in the marketplace.
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.