Industry Interview—Former NLA President on Selling his Transportation Business
Believing our Fastlane readers could benefit from a close-up look at a business owner's exit from the transportation industry, CTA interviewed former National Limousine President, Alan Melton this month.
CTA: What factors led to your decision to sell your business? (lifestyle, burnout, new opportunity, tough times in business, part of a long-term exit plan)
AM: When we engaged Charles Tenney & Associates, one of the issues we addressed was the fact that we were highly leveraged. Furthermore, because of our commissions to resort clients, our profits were never very high. We realized that a downturn in the economy could result in business failure. As we approached the time of selling, we had grown our business to capitalize on nearly all of the opportunities available in North Florida . The limousine industry was going through consolidation and since I was serving on the NLA Board, facilitating workshops at the Limo Shows and writing an article for Limousine and Chauffeur magazine, we were one of the early companies that received offers. The opportunity to sell was our chance to take some chips off the table, and to enjoy some of the fruits of our labor.
CTA: What were the financial and mental issues you dealt with as you decided to sell and as you were engaged in the process of selling?
AM: The biggest issue I struggled with was the fact that we had dedicated the business to Christ; what right did I have to sell it? Over time I realized that this is what every business owner should do. Owners should make themselves dispensable; that is what builds real value in an organization. We were also very concerned about the future of our staff. We wanted to sell to a company that had similar business values. We entertained three offers and Carey International was the company that was most aligned with our business. Now looking back I realize that selling to a large company also helped to protect the jobs of many of our staff when 9-11 occurred; we departed just prior to that event. I doubt that we would have survived, since the revenues of the business dropped from $8 million to $4 million overnight.
CTA: What did you plan to do after you sold your business? Is that what you ended up doing?
AM: I had a desire to help other business owners improve their companies. I began to offer coaching services almost immediately after we exited the business. Since many of my clients could not afford my services, I looked for other revenue opportunities. I also had a positive impression of what business brokers do, so business brokering provides some sporadic income. We had also experienced good results from our investments in real estate. We acquired a few commercial and residential investment properties for passive income and for a nest egg in a few years.
CTA: Any other factors (looking back now) that you think our Fastlane readers could relate to or find helpful as they consider exiting this industry?
AM: Prepare your business for sale, whether you plan to sell it or not. Make yourself dispensable. This gives you options, and options give you power.
**End of Interview
Charles Tenney & Associates understands the challenges business owners face when processing the decision to sell their transportation business. If we can be of any assistance to either planning or facilitating your business sale, please submit the contact form below.
