5 Factors to Consider When Selling a Business: Moving & Storage Biz in California
Deciding to sell a moving and storage company that you’ve built from the ground up in California can be a challenging decision. To make an informed choice and move forward with confidence, there are several key factors to consider. In this article, we will explore the five crucial factors that can help you determine if 2023 is the right time to sell your moving and storage business in California.
1) Interest Rate Considerations
The current market conditions present an ideal opportunity to sell your moving and storage business in California.
With favorable interest rates attracting strategic buyers, private equity firms, and acquirers, the timing couldn’t be better.
The Federal Reserve’s commitment to maintaining elevated interest rates in the long term makes selling your California moving and storage company now a chance you don’t want to miss.
Seize this opportunity to bring yourself closer to achieving your financial goals and securing a brighter future.
2) Attraction of Strategic Buyers
California’s moving and storage sector in the transportation industry attracts coveted strategic buyers who have a keen eye for investment opportunities aligning with their business goals.
The state offers a thriving ecosystem of innovative businesses, making it an ideal destination for qualified strategic buyers looking to expand their portfolios within the storage and moving sector.
- Warehousing and Storage (4.0%) of the total US transportation subsectors by revenue. Source: Vertical IQ
Whether it’s a storage facility, warehousing, or a moving company, there is a wide range of potential strategic buyers interested in acquiring businesses like yours.
Selling to a strategic buyer can bring numerous benefits, including market potential, expansion of service offerings, enhanced footprint, synergies, and access to an established customer base.
Selling to a strategic buyer can bring numerous benefits, including:
- Market potential,
- expansion of service offerings,
- enhanced footprint,
- synergies,
- and access to an established customer base.
California’s storage and moving companies attract some of the most coveted strategic buyers in the market. These industry giants have a keen eye for investment opportunities that align with their business goals, and they are setting their sights on the Golden State.
Let’s explore an example of why strategic buyers acquire businesses similar to the Armstrong Relocation & Companies’ acquisition of Amazing Moves Moving & Storage.
In a recent strategic acquisition, Armstrong Relocation & Companies, a major player in the moving and storage sector of the transportation industry, acquired a majority interest in Armstrong Relocation & Companies. This move was driven by several key factors:
- Strengthening Position in the Industry: In the case of Armstrong Relocation & Companies, a major player in the moving and storage sector, acquiring Amazing Moves Moving & Storage strengthens its position in the industry. By acquiring a well-established company with a strong reputation and expertise in residential and commercial moving services, Armstrong Relocation & Companies enhances its market presence and gains a competitive advantage.
- Expanding Service Offerings and Geographical Reach: The acquisition of Amazing Moves Moving & Storage allows Armstrong Relocation & Companies to expand its service offerings and geographical reach. The synergies between the two companies enable Armstrong Relocation & Companies to provide a more comprehensive range of services to its customers, meeting their diverse needs. Moreover, the acquisition allows the company to establish a presence in new markets and capitalize on the growth potential they offer.
- Access to Established Customer Base: Acquiring a business like Amazing Moves Moving & Storage provides strategic buyers with access to an established customer base. This allows the acquiring company to cross-sell its existing services to the acquired company’s customers and vice versa. By leveraging the customer relationships and networks of the acquired business, strategic buyers can increase their market share and revenue streams.
- Market Potential and Synergies: Strategic buyers seek acquisitions that offer market potential and synergistic benefits. In the case of Amazing Moves Moving & Storage, its acquisition by Armstrong Relocation & Companies brings together two companies with shared values and a commitment to providing excellent customer service and maintaining high-quality standards. The synergies created through the acquisition result in operational efficiencies, cost savings, and improved profitability for both companies.
- Growth Strategy and Competitive Advantage: The strategic acquisition aligns with Armstrong Relocation & Companies’ growth strategy and enhances its competitive advantage in the moving and storage industry. By acquiring a reputable and successful business like Amazing Moves Moving & Storage, Armstrong Relocation & Companies strengthens its market position and differentiates itself from competitors. The acquisition enables the company to offer a broader range of services, attract new customers, and achieve sustainable growth.
The acquisition of Amazing Moves Moving & Storage by Armstrong Relocation & Companies strengthens the latter’s position in the moving and storage industry, expanding its service offerings and geographical reach. The strategic partnership enhances its competitive advantage and creates opportunities for growth and operational efficiencies.
3) Availability of Capital
The availability of capital plays a significant role when considering the sale of your moving and storage business.
In 2023, the private equity market is expected to be strong, with a record amount of capital ready for investment. This presents a significant opportunity for moving and storage business owners in California.
To take advantage of this capital availability, it is crucial to prepare your business for sale, focusing on:
- Valuation metrics,
- organizing financials,
- differentiation,
- selective investment,
- and considering environmental, social, and governance
(ESG) factors that can attract private equity firms seeking to invest in your business.
4) Tax Planning
Taxes in California play a crucial role in the sale of a business, and recent changes in capital gains tax laws offer opportunities for moving and storage business owners in California to reduce their tax liabilities.
Qualified Opportunity Zones (QOZs) allow business owners to defer their capital gains tax by investing in designated areas. Additionally, provisions like the Section 199A deduction and the increased estate tax exemption provide further benefits.
Understanding the complexities of taxes and seeking advice from qualified professionals can help you navigate these changes and potentially save significant amounts of money when selling your moving and storage business.
5) Consulting a Business Broker
Deciding when to sell your moving and storage business and listing it for sale can be challenging. However, with the guidance of a seasoned business broker like Andrew Rogerson and his team at Rogerson Business Services, you can make the right call.
Their expertise in facilitating successful exits and maximizing valuations can help you navigate potential challenges and economic cycles.
Proper strategizing and planning, along with the assistance of experienced professionals, can position you for valuations that maximize profits in the future.
Take advantage of this golden opportunity and let Rogerson Business Services guide you through the process to achieve the success you deserve.
Selling a moving and storage business in California requires careful consideration of various factors.
By evaluating:
- Interest rates,
- potential strategic buyers,
- capital availability,
- tax planning,
- and the current market climate,
you can make an informed decision about selling your moving and storage company.
Seeking the guidance of experienced professionals, such as business brokers, can help navigate the complexities of selling.
Understanding the Process of Selling a Moving & Storage Company
The six-step selling process provides a comprehensive framework for business owners considering retiring soon and selling their moving and storage business in California.
As a certified business broker, I understand the importance of getting a:
- business’s financial records in order,
- conducting a professional valuation,
- identifying the target market,
- cleaning up the physical appearance,
- developing a marketing plan,
- and working with a business broker to achieve a successful sale.
In this final step, I will take you through these crucial six steps to help you prepare and position your moving and storage business for sale in California.
Let’s dive deeper into each step and explore their compelling benefits:
Step 1: Get the business’s financial records in order. Organizing and preparing the financial records of your moving and storage business is crucial for a successful sale.
Potential buyers will evaluate the financial performance, profitability, and growth potential of the business based on these records.
By having your financials in order, you demonstrate transparency and instill confidence in buyers, increasing the likelihood of receiving favorable offers and maximizing the sale price.
Step 2: Conduct a business valuation. A professional business valuation helps determine the fair market value of your moving and storage business.
It takes into account various factors such as:
- Assets,
- liabilities,
- cash flow,
- market conditions,
- and industry trends.
Obtaining a reliable valuation enables you to set a realistic asking price, ensuring that you maximize the value of your business while attracting qualified buyers. It also provides you with a solid basis for negotiation during the sale process.
Step 3: Identify the target market. Understanding the target market and the types of buyers interested in your moving and storage business is vital for positioning it effectively.
This step allows you to tailor your marketing efforts and showcase the unique selling points of your business that align with the preferences and needs of potential buyers. See this business for sale page.
By highlighting the strengths and advantages of your business, you can attract the right buyers and generate increased interest and competition, potentially leading to higher offers.
Step 4: Clean up the business’s physical appearance. First impressions matter, and this applies to the physical appearance of your moving and storage business.
Before listing your business for sale, it’s essential to clean up and enhance the overall presentation of your:
- Facilities,
- equipment,
- inventory,
- and assets.
A well-maintained and visually appealing business creates a positive impression on potential buyers, instilling confidence in the quality and professionalism of your operations.
Step 5: Develop a marketing plan. Creating a comprehensive marketing plan allows you to reach a wide pool of potential buyers for your moving and storage business.
This includes utilizing various channels such as:
- Online platforms,
- industry-specific publications,
- social media,
- and targeted outreach to potential buyers.
A well-executed marketing plan increases the visibility and exposure of your business, generating more inquiries and attracting serious buyers who are actively seeking acquisition opportunities.
Step 6: Work with a business broker. Engaging the services of a professional business broker specializing in selling moving and storage businesses can significantly benefit retiring business owners.
A seasoned broker brings extensive experience, industry knowledge, and a vast network of potential buyers to the table. They guide you through the entire selling process, handle negotiations, and ensure that your interests are protected.
Working with a business broker not only saves you time and effort but also increases your chances of achieving a successful sale and maximizing the value of your business.
For retiring business owners, following this six-step selling process offers compelling benefits.
It provides a structured and organized approach to selling their moving and storage business, ensuring that no critical steps are overlooked.
By:
- Properly preparing their business for sale,
- conducting a valuation,
- targeting the right market,
- enhancing the physical appearance,
- implementing a comprehensive marketing plan,
- and partnering with a trusted business broker, retiring owners can maximize the value of their business, secure a profitable exit strategy, and confidently transition into the next phase of their life.
Are You Ready To Sell Your Moving & Storage Company in California?
Rogerson Business Services (RBS) is a certified business brokerage firm specializing in selling your business in California. RBS created a comprehensive summary with every step of the selling process explaining the steps of the selling process, including what you can expect in establishing the proper price and valuation for your storage and moving business.
Get in touch today for a free consultation and let us learn a few things about you.
