Knowing what questions to ask and knowing what the answers should be is a powerful position to be in when buying or selling a limousine company. If you don’t know what questions to ask, it gets pretty easy to pay too much for a company. Alternately, you may let your company go for a fraction of the true value. This is the fundamental basis for huge broker commissions, some as high as 10% – 20% of the sale price. That’s a pretty healthy tip on a half million dollar purchase, don’t you think? The good news is that I know what questions to ask, I know what the answers should be and do not charge excessive or what are sometimes considered unreasonable fees.
There are two kinds of buyers and sellers. Those who want to do everything themselves and those that want a broker to handle everything. I serve both kinds, but I am not a broker. I facilitate acquisitions working for either a buyer or a seller in any given transaction, but never both.
For the do-it-your-self types I basically guide them through the whole process. I provide the forms and write the presentations. I provide consultation as necessary to guide them through the whole process. About all I don’t do for this type of buyer/seller is find the other party and handle all communication and negotiation with their buyer/seller. This service I provide on a retainer basis; it’s coaching.
For the show-me-where-to-sign types I handle everything. First, I help them determine the value of their company and justify that value through documentation. I find and qualify the other party, then I present the opportunity in the best light possible. I justify the price and outline the terms of the deal. Once the parties have agreed on the basic points of the deal, I introduce them and try to bring them to an agreement of sale.
It’s hard to be specific regarding acquisition services. The only true constants in the buying or selling of limousine businesses are that no two deals are the same and that there are no guarantees in the World of Livery, especially when it comes to acquisitions. All you can do is gather as much information as is available, seek good advice from an expert who truly has your best interest at heart and make a decision based on the known facts.
Call me today if you are thinking of selling in the next couple of years or if you are interested in expanding through acquisition. The one thing you can definitely count on concerning acquisitions is me helping you choose the best course of action for your individual situation. I will not lead you down the wrong path for the sake of a hefty commission. I can’t work for free, of course, but I will guide you in the right direction. I would rather have a happy customer that paid me a little money for my time rather than an unhappy one who paid me tens of thousands. As always, it all comes down to Goodwill. If we can’t do business and retain Goodwill between us, then I would rather not do business.
