• Obtain a third party business valuation from an industry specialist. Business value is commonly misunderstood in the transportation industry by all parties in a transaction. By understanding the value of your business, you will be able to properly consider the quality of a buyer’s offer. You will also know if continued discussions with a particular buyer are worthwhile. Additionally, the valuation will clarify what adjustments need to be made to improve business value. It will also help indicate when may be the best time for you to sell.
• Talk to a transaction tax specialist to help you understand the tax implications of a possible sale. Many accountants, even those that have been involved in business sales, are not transaction specialists. Transaction specialists take a comprehensive approach to reducing your tax liability in a sale that includes pre-sale, sale, and post sale strategies. If would like to speak to an experienced transaction tax specialist, CTA can refer you to one.
• Keep an open mind. Business owners are often very rigid when it comes to “what a sale should look like.” A large part of this comes from not being properly educated about the sale process. An array of complex issues can influence the manner in which a business is transferred to a buyer. Keep an open mind and anticipate sharing some risks along with a buyer and lender in the process.
• Recognize the significance when dealing with your “best” buyer. In many cases, a particular strategic buyer can financially justify far more money than any other prospective buyer that would be available to you now or in the future. Sellers may get once chance to strike a deal with the “best” buyer. Remember, the buyer is often more inexperienced than the seller. Get professional help early in the process, because a deal with someone other than your best buyer can mean up to 50% less money at the closing table.
• Let an Industry Specialist Bridge the Gap. Buyers and sellers often reach impasses early in a sale process because they are miles apart on the value of a particular company. As mentioned in tip 4, you may have one chance to do a deal with the “best” buyer. Failing to bridge value gaps can largely be attributed to a seller’s inability to understand and demonstrate the financial impact available through the acquisition. As transaction specialists exclusive to the transportation industry, Charles Tenney & Associates is able to help buyers examine all of the short and long term financial benefits of acquiring your business and justify the maximum sale price.

Further, there is a good chance you may continue to work with the buyer as a consultant or manager following a sale. Having a professional intermediary facilitate negotiations through what can be a very emotional process greatly enhances post transaction success. And in most cases, Charles Tenney & Associates’ involvement and industry expertise make the financial impact of the deal much more rewarding for the buyer than it would be otherwise.

If you are interested in making sure you get the best deal with a buyer you are already in discussions with, contact Charles Tenney & Associates to learn more about our “Negotiating Only” transaction services.