Exit Planning for Freight Brokers

Exit Planning for Freight Brokers
By Tim Taylor, President of Network F.O.B.
You’ve worked at building your freight brokerage
business and to ensure retirement. Like most business
owners, freight brokers dedicate their time and energy
to growing and maintaining business in a competitive
environment, with little time planning for sale and
retirement.
Some important decisions need to be made. What my
brokerage business is worth and who would buy it?
Should I turn the business over to my children or other
family members? Are they capable of managing and
growing the business? Do I protect the interests of longtime employees? Trust my children with my retirement?
Most important: Freight brokerage is a personal service
business much like a lawyer. New owners have a daunting
challenge managing and growing the business ensuring
your retirement income.
An ideal arrangement when children are capable,
have good work ethics, and are able to work together
harmoniously is selling to them. If you’re not sure,
ask your wife. If selling to family is not in your best
interest, then you need to position your business for sale
to somebody else. Key among this: customer following.
If you’re doing sales, start transitioning. Don’t wait until
a health event is upon you or you could end up in a firesale. Transitioning a book of business takes a year or
two for the right person, with the wrong person it may
never happen. Continuation of the revenue stream is
everybody’s biggest risk.
About the author: Tim Taylor has been involved in the
sale and purchase of over 15 books of business. He has
been in the 3PL business for over 30 years.
www.networkfob.com.
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