Thanks to the thriving merger-and-acquisition environment, trucking owners in North Carolina may receive inquiries from prospective buyers even if they’re not actually considering selling. For times when the owner of a trucking business does want to sell, it’s important not to scare off interested parties.
Business transactions involving trucking companies sometimes fizzle out if prospective buyers don’t see the potential for a company’s growth. Some buyers also hesitate or present discounted offers if they see trucking operations with an owner who is too hands-on. A lack of engagement can also affect a buyer’s willingness to present a lucrative offer. An example of this is when an owner waits for months to respond to an initial offer. Issues with a company’s driver base — e.g., a high turnover rate — may discourage sellers as well.
Buyers also tend to notice if a business has a culture that’s toxic or apathetic and no longer diligent about safety and other standards. A seller is also advised to get a third-party valuation so they don’t have unrealistic expectations about the value of their trucking business. A seller who’s too rigid or inflexible could turn off potential buyers. Unreliable record keeping, reliance on a few key customers and not handling taxes in a smart way are among the other possible reasons why buyers may not be interested in a trucking business.
Existing litigation or fatal accidents can also affect a trucking company’s appeal to buyers. However, a business law attorney might be able to help a seller avoid unintended missteps. Legal counsel could also streamline the selling process by reviewing offers, negotiating contract terms and ensuring that necessary documents are properly prepared and filed.