Sell my Road Haulage and Freight Business

Realise full worth for haulage and freight machinery and operational structure

How to sell a haulage and freight business

The road haulage and freight services sector provides an essential service for people and businesses throughout the UK.  Selling a business in this sector still requires careful pre-planning, however, to ensure it is operating at its best when presented to market.

If you are thinking of selling your road haulage or freight services business, you may have already included an exit strategy within your initial business plan and feel that now is the right time to implement it. Either way, using the services of professional business sales brokers offers you the best chance of achieving your objectives from sale.

 

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• Previous sales and acquisitions experience
• Sector specialisms and average success rate
• Sales value expectations and growth potential

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10 Key Questions to Consider Before Appointing an Advisor

Our Essential Checklist to Selling your Business

Why use professional business sales brokers?

Selling My Business can offer over 30 years’ experience of successful business sales, and specialise in selling road haulage and freight services companies. We understand your sector and the challenges you face – rising fuel duty, potential border control issues, and the shortage of skilled drivers – and can help you achieve the highest possible value.

So what issues do you need to consider prior to placing your business on the market?

• Why you are selling your business
  Perhaps you are approaching retirement, need the proceeds from the sale to fund a new business venture, or simply feel that market conditions are right? Whatever the reason, you need to be able to clearly articulate it to interested parties.

• Business valuation
  Valuing a business is not an exact science, but a common valuation method for businesses in this sector uses EBITDA (Earnings before interest, tax, depreciation and amortisation). This figure is multiplied by an agreed number, arrived at using variables connected to your business – strength of brand, for example, timeframe for selling the business, and how ‘tied’ you are to your brand in terms of customer relationships and goodwill.

• Preparing your business for sale
  Straightforward actions such as making sure your accounting records are up-to-date and that you are fully compliant with HMRC requirements can reassure potential buyers, but your sector also faces specific issues that may require attention before and during the sales process.

Value my haulage and freight business

To kick start the sale process, you will be required to prepare your business by carrying out a valuation of your haulage and freight business. We have a proven track record of facilitating the sale of a variety of businesses in the transport and logistics sector throughout our 60 years’ in the industry. As a result, the Selling My Business, in-house valuation team offer a haulage and freight business valuation service (if you choose to sell with us), boasting a fast turnaround in comparison to other business transfer agents.

How much is my haulage and freight business worth?

The Selling My Business team will take you through how to value a haulage and freight business, ensuring that you understand the factors influencing business worth. Our extensive valuation service consists of looking at more than just your profit and loss statement, the SMB valuation team will take a forensic approach by filtering through your financial activity, such as overheads and gross profit margin.

Considerations for the road haulage and freight services sector

Fuel costs

Fluctuations in the price of fuel, plus increasing diesel fuel duty, makes effective budgeting difficult for operators in your sector, restricting cash flow and affecting long-term profitability. If sterling weakens once we leave the European Union, it could place further pressure on an already strained working capital situation.

Driver shortage

A shortage of experienced drivers is hampering the ability of businesses in this sector to operate effectively and ultimately grow. As a result, current workforces experience additional pressure to meet deadlines whilst working long hours and dealing with the constant threat of theft from their vehicles, which is partly due to a lack of secure areas to stop and rest.

Brexit and border controls

Our exit from the European Union brings significant concerns for road haulage and freight businesses facing potentially long delays at European and international borders. Although the Haulage Permits and Trailer Registration Bill 2017-19 is intended to facilitate the international transportation of goods by road after we leave the EU, general uncertainty remains over how Brexit will affect this sector.

Semi-electric vehicles

The move away from traditional fuels towards semi-electric and driverless vehicles will affect businesses such as yours in the future. This form of new technology requires considerable capital investment, even though the projected savings are significant.  

Clearly there is much to consider before you place your road haulage and freight business for sale, from the issue of confidentiality to how you will extract the value from your business once it has sold. 

Our expert team at Selling My Business can help you achieve your goals and objectives - please call for more information and to arrange a free consultation.