Why sell a successful fleet right now?

Today, the market for selling successful fleets is hot! 

There are four primary reasons truck fleets are selling for the best prices in years:

  1. Today, investors have more money waiting to be used than at any time in history.  Private equity firms are sitting on more than $1 trillion in uninvested capital, and the S&P 500 companies have more than $1.5 trillion to invest. The cash is available.
  2. Prices are up!  Well managed, profitable fleets are in demand.  Buyers are paying more: valuation multiples for middle-market companies are up from 5.9X in 2009 to 6.4X in 2014. For companies selling in the range of $100 to $250 million, multiples are up from 7.2X in 2009 to 8.3X in 2014.
  3. It takes 9 to 12 months to sell a medium or large fleet.  Therefore, there are no guarantees that the prices being paid today will continue to rise or fall in the next year.
  4. Most family-owned fleets do not survive long term.  88% of family-owned businesses believe ownership will not change, but only 30% of businesses survive into the second generation -- just 12% into the third generation and less than 3% into a fourth generation.  (Source: Family Business Institute)

Selling all or part of your fleet is a life-changing decision, and one that deserves serious consideration. 

You want to secure the best price and terms possible. The business climate plays a major role in determining when you should or should not sell.

What other factors do you consider when you are thinking about selling your company?

 

TAGS: News
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