|
Finding trucking companies evaluation is not something that is easy to determine. This kind of company tends to have some unique features that set it apart from other kinds of businesses. It is a task that tends to require expert assistance from a specialist and should not be a task handed over to traditional sources such as a CPA to evaluate. These companies are unique There are a variety of techniques that can be used to determine the value of a company. One of the most basic models is taking the amount of liabilities from assets to determine net worth. It would seem that this might apply to this situation when in fact this business kind may have factors involved that are too fluid to produce an accurate result. These companies tend to be privately held so there is no way to determine its value based on number of shares or the price of shares. The asset/income/market approach is not reliable either. Value fluctuates frequently The value of a company can change over time. Some of these time periods that impact value can occur within months of each other. Variables such as the price of fuel, surcharges, increases to insurance, wages, or other factors can influence value positively or negatively. This can cause problems when a value is set at one point in the year but changes in a few months time. In the case of paying taxes to the IRS or setting a selling price, this can cause a company many thousands of dollars in lost revenue. Traditional valuation services do not understand the industry The variables that go into a company’s worth are not ones that are easily understood by people outside the industry. Having a CPA or attorney or even traditional business services attempt to put a price tag on a business like this can be disastrous and can incur a larger tax liability than necessary. People that have a need to sell because the founder has died or other reasons will want to find someone that has knowledge of the trucking and transportation industry in order to get the best result. Most of these companies act as advisors to owners and do not arrange or carry out sales for them. These companies provide the information to the seller that allows them to make the best decision as to value and how to structure the sale to reach its maximum benefit for the owner.
Related Articles -
companies, evaluation,
| 
