Sellers considering selling their businesses get answers to key questions to determine if now is the time to sellPHOENIX, AZ, UNITED STATES, August 20, 2015 /EINPresswire.com/ -- Andy Ahern, Founder and CEO of the premier transportation M&A advisory firm Ahern & Associates, appeared in Part 2 of his recent podcast series on CFF Nation, a website dedicated to covering trending news and topics relating to the transportation industry.
The podcast series, titled Finish Line with Andy Ahern, addresses the topic of selling a transportation or trucking company, and provides key information, expert opinions and advice, and statistics regarding planning and executing an exit strategy for owners. Part 1 of the podcast series was presented previously, introducing the subject of sellers needing to be mentally, financially, and physically prepared to let go of their businesses.
In Part 2 of “How to Sell a Transportation Company”, Ahern opens with a discussion on assembling a team and the importance of determining a selling approach. He explains that sellers need to gather a vast amount of information, and they must know what information should be shared and what information should not. He suggests small companies use a broker, or a M&A Advisory service or a local attorney – someone with transportation experience to help and provide a mechanism for buyers to acquire your company. “You need to have someone with a lot of transportation experience,” Ahern said. “Number one: Just because a company’s big doesn’t mean they’re going to buy your company, and just because they are large doesn’t mean they’re financially solvent,” he explains.
Ahern goes on to explain that if sellers will be using a business broker, that broker will be “in the middle”, which, in his opinion, is not the best option for sellers. In the process, if a company is a trucking company, there is certain information that sellers must make readily available. He explains that sellers must have financial statements for the past two years, including balance sheets and profit/loss statements. Sellers want to show projections and add-backs, equipment lists with fair market values, and others. He recommends that small companies do not spend the money to get an appraisal; instead, Ahern recommends that sellers go to their truck dealers and get values. He also suggests owners not try to do it themselves.
He also discusses insurance value, review of business, the due diligence process, costs, and he discusses the network that Ahern & Associates has available to help sellers with every step of the preparation for selling as well as the process of selling itself. In this 2nd part of the “How to Sell a Transportation Company” series, Ahern suggests that sellers need to reveal everything from revenue per mile to revenue for all miles, and companies shouldn’t have more than 20% of their business wrapped up in any single customer, or 10-15% of business with freight brokers.
He concludes the podcast with a discussion on what buyers are looking for, specifically in a business that may be of potential interest, and reveals the three components a seller needs in order to improve their chances of getting the maximum dollar when their companies are sold.
For more information about selling a trucking or transportation company, or to learn more about Ahern and Associates, interested parties can visit www.ahern-ltd.com or call 602-242-1030.
About Ahern & Associates, Ltd.
Ahern and Associates is North America’s leading trucking and transportation management consulting firm. The skilled consultants at Ahern and Associates specialize in mergers and acquisitions of trucking and logistics companies as well as the restructuring and evaluation of existing carriers that seek to increase operating efficiency and improve profitability. Since 1987, Ahern and Associates has aided hundreds of buyers in the acquisition of trucking and logistics companies throughout the U.S. and Canada as well as assisting many transportation and logistics companies in reducing their overall operating costs and increasing their profitability.
For more information, please call 602-242-1030 or visit http://www.ahern-ltd.com.
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