Today, the market for selling successful fleets is hot!
There are four primary reasons truck fleets are selling for the best prices in years:
- 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.
- 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.
- 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.
- 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?
