You've worked hard for many years to establish your business as a successful warehouse and logistics service. You've experienced the ups and downs of the transportation and logistics industry. So, what's next?
Perhaps you're nearing retirement, or your health isn't what it once was. Maybe you'd like to spend more time fishing, spending time with your children, grandchildren, or travelling. You may simply want to swap out an old challenge for a new one.
Whatever the reason, you are now considering selling your logistic business, and here's how to maximise the value of your life's investment.
1. Start with Valuation of Your Logistic Business
To begin the sale process, you will need to conduct a business valuation to determine the value of your company. This will help you set a guide sale price for potential buyers and plan for the future.
Understanding the true value of your logistics company will aid you in identifying potential buyers and evaluating offers. Some sellers will give up the functioning firm as a condition of selling the tangible assets, while at the other end of the scale, the company's tangible assets may only be a small proportion of its total value.
The truth is that your business may appear to you to be more valuable than it is to others. Value calculation specific to your operation can be used to determine a true price. This is where we can help.
I offer complimentary no-obligation logistics business value appraisal by going over the key aspects that impact its worth. This value appraisal will give you an idea of the market value of your freight forwarding, logistic and transportation business.
2. Set Standards and Train
Your team must be on the same page in order for your business to run smoothly, with a focus on customer service, reducing costs, and productivity. Developing and implementing a comprehensive training program that allows for continual improvement and learning will help your employees succeed.
Using a top-down strategy motivates your entire team to work toward a common goal. If bosses aren't on board, subordinates won't be either. Bi-annual training and team-building workshops will improve everyone's sense of unity while also keeping your company updated with current trends and industry standards.
A buyer will be impressed by the synchronicity of your staff and how well your firm can work without continual involvement from the owner when they visit your business.
3. Be Honest
Buyers have become more sophisticated in recent years, and they can easily see through the hype. Therefore, it is vital that you do not over-promise buyers when selling your logistic business. Be honest and tell things exactly how they are. It may just get you bonus points from the eventual buyer in the form of a high sales price.
If you've been considering succession planning and exit options for your logistic business, I hope these three tips have been helpful. For greater assistance, you can contact me to set up a consultation to understand the steps you can take to maximise business value before selling your logistic business.
Warm regards
Serdar Kabul
Business Broker, B.Eng.