Today, the market for selling successful fleets is hot!

There are four primary reasons truck fleets are selling for the best prices in years:

  1. Today, investors have more money waiting to be used than at any time in history. Private equity firms are sitting on more than $1 trillion in uninvested capital, and the S&P 500 companies have more than $1.5 trillion to invest. The cash is available.
  2. Prices are up! Well managed, profitable fleets are in demand. Buyers are paying more: valuation multiples for middle-market companies are up from 5.9X in 2009 to 6.4X in 2014. For companies selling in the range of $100 to $250 million, multiples are up from 7.2X in 2009 to 8.3X in 2014.
  3. It takes 9 to 12 months to sell a medium or large fleet. Therefore, there are no guarantees that the prices being paid today will continue to rise or fall in the next year.
  4. Most family-owned fleets do not survive long term. 88% of family-owned businesses believe ownership will not change, but only 30% of businesses survive into the second generation — just 12% into the third generation and less than 3% into a fourth generation. (Source: Family Business Institute)

Selling all or part of your fleet is a life-changing decision, and one that deserves serious consideration.

You want to secure the best price and terms possible. The business climate plays a major role in determining when you should or should not sell.

What other factors do you consider when you are thinking about selling your company?

This blog post is done in partnership with Fleetowner, John Sloan, Vice Chairman at Allegiance Capital, is a featured investment banker on IdeaXchange launched by