CTA Articles

Tenney Video Tip: Who is Going to Buy your Business?
Tenney Video Tip: Who is Going to Buy your Business? view video...

SBA Legislation Special Update
Extension of SBA Recovery Lending Programs Will Support $1.8 Billion in Small Business Lending
Agency plans to restart Recovery loan approvals on March 10

Case Study: When a Business Owner Dies Unexpectedly...
Recently, the sister of a transportation business owner called CTA. The owner had passed unexpectedly. The sister, who knew nothing about the transportation business, was designated to handle the estate. Overwhelmed, she asked for CTA's assistance.

Case Study: “Getting Divorced. What’s Our Transportation Business Worth?”
Business owners seek business valuations for many reasons.  One of the most common reasons is for settling a divorce.  The following case study offers a look into a reality over 50% of transportation business owners face at some point in their career.

The Importance of “Fair-Mindedness” in Acquiring Businesses
When acquiring transportation businesses or any business for that matter, sometimes what appears to be a great deal on paper does not materialize on the buyer’s bottom line. In many cases, this occurs because the deal is deficient in fair-mindedness. 

What Actually Goes in Your Pocket After a Business Sale?
The sale price your business attracts is often very different from the amount that actually goes in your pocket following a business sale.  The following model is a helpful tool to help you understand how a typical asset sale functions.

Exit Strategy Tips:  Preparing for When, Why, & How You Leave the Industry
The problem with many exit strategies is their failure to exist.  Whether this is your first or thirtieth year in the transportation industry, an exit strategy is an essential part of ensuring your long-term financial interests stay in tact despite a number of scenarios that could require you to adjust your career plans in the transportation industry.

Why a Down Economy May Be Making Your Business Value Go Up
If you are like many transportation business owners, your business could be down from 10-25% or more compared to last year.  But as surprising as it may seem, your business may be more valuable today than it has been in several years. 

Financial Peace: Before, During, & After a Transportation Business Sale
Selling a transportation business should be and is a rewarding experience for many owners.  However, some business owners are never able to overcome the anxiety that can accompany the sale process.

SBA Raises Cap on “Goodwill” Financing
Effective Oct. 1, The Small Business Administration will modify a restriction it had placed on loans used to finance acquisitions of small companies.

Who is Buying Charter & Tour Businesses?
“Yes, I am interested in selling. But…is there anyone buying charter & tour businesses right now?”  Considering CTA just wrapped up its 7th transportation business sale in 5 months, it is safe to say that someone is buying them.  Here is what is happening in the market right now.

4th Quarter Tips: How to Avoid Getting Burned By the Backburner
For many business owners, selling your transportation business is not a question of “if” but “when.”  And for some, that time may be approaching sooner than later. 

Tax Implications of Sale Should be Addressed at Beginning of Sale Process
Selling a business is a complex process that often requires creative problem solving skills along the way to get a deal across the finish line.  Failure to confront tax implications early in the sale process can create big problems late in the game.  And the later a problem is discovered in the process of a deal, the more difficult it is to overcome. 

Are Deals Getting Done in this Economic Climate?
That may depend on which business broker you ask.  Charles Tenney & Associates has sold three transportation businesses since April 3rd with two more business sales scheduled to close any day.  The time it took to complete each deal: 181 days, 70 days, & 128 days.

5 Ways to Improve the Value of Your Transportation Business
Whether selling your business is in your 1, 3, 5, or 10 year plan, it is always important to continually focus on improving the value of your business. And, yes, there are many ways to improve the value of your business in a down economy.  Here are five to get you started.

Wrong Financial Advisors Far More Dangerous Than Economy
When approaching a business sale or business purchase, it is imperative to surround yourself with the finest financial advisors possible. Forget the economy. Nothing can cause financial damage in a business sale or purchase like inviting an advisor into the game who doesn’t know how to put his uniform on.

The 4 “S”s of Satisfying Business Sales
Facilitating the sales of businesses daily, it is not hard to develop a sense for what matters most to business owners as they exit the transportation industry. 
Make sure to surround yourself with professionals (attorneys, brokers, accountants, etc.) who can help you incorporate the following ingredients into the process of selling your business.

Family Business Succession Plan May Need Plan B
With economic pressure throwing a few wrinkles into retirements/exit timetables, many owners of family operated transportation businesses are facing succession plan decisions much earlier than anticipated.  Failure to address/adjust plans while considering today’s economic climate/forecast as well as your current business value could subject your retirement plan to severe risks.

Business Value: “You Don’t Know What You’ve Got Till It’s Gone”
Often in tough economic times, seeking out a business valuation is about as enticing as standing on a scale after Thanksgiving dinner.  Because the information we expect to find is undesired, many of us would rather not welcome the discouragement.

6 Things to “Not Do” When Selling Your Bus or Limo Business
By Dr. Michael L. Lawrence, CTA partner
The following “Six Most Important Things to Not Do”, in order of importance based on the damage I have incurred or witnessed, are from the perspective of the seller or prospective seller. In a future article, I will offer a similar list for prospective buyers. Since sellers tend to be much less experienced in this field than buyers, here are the “watch outs” for prospective sellers.

3 Approaches to Increasing 1st Quarter Sales
Because much of the industry experienced a performance dip in the final quarter of 2008, an effective sales strategy will be paramount in the first quarter of 2009.  Here is a snapshot view of three possible approaches to maximizing your results in the first quarter.

Updates on the Lending Market & Seller Financing
Are banks lending money to finance business purchases in the transportation industry?  Yes.  But owners in the process of selling or considering a sale should understand that lenders are being much more selective with the business transfers they choose to finance. 

10 Reasons to be Excited about 2009
No matter what challenges may come our way, as Americans, we have the freedom to apply our talents, creativity, and sheer determination to dynamically improve our quality of life—in or out of this industry.

LCT Industry & the U.S. Economy: Review & Outlook for 2009
The U.S. economy has entered a downturn that is likely to be the most severe recession of the last 25 years. Many of the operators in the Limousine and Chauffeured Transportation Industry (LCTI) have reported a dramatic drop in revenues in the fourth quarter of 2008 and are expressing concern that they might not survive an extended, significant drop in business.

Articles from 2008