Why Buying & Selling Transportation Businesses is so “Hot” in the Summer
As industry-specialized business brokers, CTA facilitates a steady flow of buy-sell activity between January and December every year. But the summer season is unique in that it creates unusual activity that helps both buyers and sellers get what they want. Charles Tenney & Associates is at the center of that activity. Let’s take a look at 6 reasons why the season for buying and selling transportation businesses is red hot-- right now.
Slow Down in Revenue Stimulates Selling Interest.
As business slows in the summer for some companies, business owners often assess the passion and the energy that will be required of them to continue to be successful or, in other cases, just keep the doors open. Many owners conclude their heart is no longer in the transportation industry. These conclusions bring many sellers to the market. Some owners reach the summer season and have no choices. They are forced to close their company doors to avoid losing more money. *For owners in this situation, make sure to speak with a CTA business broker before closing your company’s doors. There may be opportunities to enhance your industry exit by quickly selling off revenue streams/licenses/permits/etc. You do not have to leave this industry empty-handed.
Demands of Industry Force Owners to Reevaluate Priorities.
Even when transportation businesses are performing at a very high level, summer months often force owners to reevaluate their priorities in life. Reality sets in when the owner loses precious family time due to the demands of running a successful transportation business. Baseball games, family reunions, vacations, etc. *As a former transportation business owner, Charles Tenney can personally relate to this dilemma. Every business owner has a breaking point. For many, it is the season of summer when owners say “it’s time for a change” and they choose a different path for their family. This creates a spike in selling activity in the market.
Slow Down in Sales Stimulates Buying Interest/Creates Ability for Owners to Work “On” Existing Transportation Company. As business slows for some transportation companies in the summer months, it creates an opportunity for business owners to step out of the trenches and work “on the business” as opposed to working “in the business.” The summer months can create a strong appetite for acquisitions in transportation business owners desiring more utilization on existing equipment. Nothing motivates a business owner to get in acquisition mode quite like a stationary vehicle. As a result, interest in buying transportation businesses increases dramatically in the summer months.
Buyers from Corporate World/Serial Entrepreneurs Flood Buying Market.
Corporations commonly let employees go during the summer months—particularly senior employees near retirement. These terminated or retired corporate professionals are some of the best buyers in the country for performing transportation companies. When senior employees are laid off, their age and expectation of income often make them unemployable in the corporate world—which leaves buying a business their only option to maintain their standard of living.
Additionally, the summer months attract serial entrepreneurs back into the buying market. Serial entrepreneurs often have the illusion that they are ready to retire to summers on the golf course. Two weeks into the summer, many are bored out of their minds and looking for another business to buy. This combination of both motivated and qualified buyers engaging the buying market during this season is positive for all business owners considering selling their transportation business.
Transition Easier for Buyer in Summer Months. Relocating or disrupting a family’s way of life in the middle of a school year can be tough on a family—particularly on children. Many business buyers prefer (if possible) to make major life adjustments in the summer months to limit the stress on the family. This self-imposed sense of urgency helps create an environment conducive for securing fair deals for both buyers and sellers that get done fast.
Transition Period Often Easier for Company/Employees during Summer Months. Because the service demands of some transportation businesses often slow down during the summer months, many business buyers see this season as a good opportunity for a smooth transfer of ownership. With staff more available during off-peak time, there are, in many cases, greater opportunities to facilitate new ideas, implement necessary training, and communicate the new owner’s goals and vision for the company. The low-demand period also affords the new owner to learn the business and make mistakes with fewer consequences.
If you are interested in buying or selling a transportation business, it is important for you to be engaged in the market during this season of high activity. Why? Because this particular season of high buy-sell activity offers both sellers and buyers unique advantages to find and secure fair deals in a timely manner. Being engaged starts with communicating with Charles Tenney & Associates. As specialized business brokers at the center of the transportation industry’s buy-sell activity, CTA affords both transportation business buyers and sellers access to buy-sell opportunities they would otherwise never see—not to mention the expertise that comes with having completed 140+ deals exclusively in the transportation industry.
Get engaged in the buy-sell market today. Please submit the contact form below to speak confidentially to a Charles Tenney & Associates business broker.
