When is the right time to sell your fleet?

Sept. 15, 2014
Timing is everything...

In life, timing is everything. The same applies when you are selling a fleet.  Accurately predicting the ideal time to sell is not easy.

However, there are four key factors that will impact the value of your company and all are time-sensitive.  They are:

  1. Sell when your fleet is performing well.  Investors will pay more for a fleet that has solid financials and is growing. This may mean you sell when your company has just had its best year! 
  2. Sell when the future is bright.  Investors want to a nice return on their investment, and the brighter your company’s future looks the more attractive it will be.
  3. Sell when your management team is complete.  You and your team built the company. You made it the success it is today.  Investors want to know that all of the key players are already in place and that they will remain actively engaged after the transaction.
  4. Sell when you are healthy.  Unfortunately, your health does impact the value of your company and more importantly your ability to enjoy the rewards of building a successful operation.  Most investors will need you to remain actively engaged for a period of time. Don’t wait until your health forces you to sell. Sell when you can enjoy the fruits of your labors.
  5. Sell when the market is up.  You want to maximize the value of your fleet, and the best time to sell is when investors have money and when the demand for good companies is at its peak. And, right now the market is very very hot!

If any of these factors decline, it can dramatically impact the value of your company. Timing is everything. If you are: healthy, your company is setting new records, and the market is up - the time is now!  Where do you see the trucking industry in one year? How does that impact your decision to sell or recapitalize?

About the Author

John Sloan | Vice Chairman

John Sloan is the Vice Chairman of Allegiance Capital, a middle-market investment bank that works with business owners to help them sell or raise capital. 

John has more than three decades of C-level experience in investment banking and private equity.  He has personally executed transactions with fleet owners and understands the unique needs of the trucking industry. 

During his career, John has raised more than $1 billion in debt and equity.  He is an expert in all aspects of investment banking and has evaluated and negotiated the acquisition of more than 30 companies in: energy, construction, retail, telecom, environmental, logistics and manufacturing, with an aggregate value in excess of $7 billion.

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