BisSales has recently successfully sold a Melbourne based Crane Truck Business.
Overview of Business:
The business had carved out a niche for its self in the outer Melbourne suburbs over 30 years and had a strong long term clientele. They operated Rigid , semi-rigid and articulated crane trucks along with pick and carry crane.
Our client approached us to assist with the sale of his crane truck business as part of his retirement strategy.
The primary challenge with the sale of a business with a substantial capital equipment component is to arrive at a price that fairly reflects the value of the business its self and the capital equipment.
It is not necessarily a matter of estimating the equipment , in this case trucks and cranes , and then adding a component of goodwill.
After negotiations with several potential purchasers an offer for the purchase of the business was accepted by the owner.
The challenge with vehicles in particular is the perceived value. Can a truck operating on a daily basis generating income for the business be considered to be of the same value as the equivalent vehicle at auction?
We would say no, as the sale of a vehicle at auction to does not provide the purchaser with a roadworthy certificate nor does it provide the opportunity for the purchaser to see the vehicles under operational conditions.
However would a purchaser take the same view?
Considerations when selling:
When vehicles are sold as part of a business sale the owner is required to provide a roadworthy certificate for each vehicle at settlement, in the case of cranes these need to have current crane safe certificates provided.
As these are a requirement of the business sale and to transfer ownership to the purchaser the cost of preparation and provision of these is the vendors expense.
Selling a business in the transport industry is not a simple process, with experience we can assist you with the process.
Want to know more about the sales process CLICK HERE