Selling a Transportation Business in Florida
A Guide for Florida Business Owners by Patrick Archer, MBA, CBI, CM&AP | Florida M&A Advisor | Calder Associates of Florida | 305.763.4112 (Mobile) 407.499.2855 (Office)
Selling a Transportation Business in Florida
Selling a Transportation Business in Florida is an important decision for owners of these essential business in the Sunshine State. The transportation industry is one of the pillars of Florida’s economy which is fast approaching $1 trillion in annual GDP. Owners contemplating selling a Florida transportation business must weigh the pros and cons of selling the business. Retirement is the primary motivating factor for most owners, while other owners may be planning to pursue new ventures in different industries.
Regardless of the motivations, sellers of transportation businesses in Florida will want to package and price the business to stand apart from competing listings and attract potential buyers. Many of these buyers are looking to take ownership of a successful transportation business in Florida and tap into the positive demographics, population growth, median household income and other trends benefitting Florida small business owners today.
Timing Considerations when Selling a Transportation Business in Florida
If you are the owner of a successful transportation business in Florida, now could be a great time to take advantage of these trends and the rising demand among U.S. and international buyers for great businesses for sale in Florida that are established, profitable, “essential” in the eyes of local governments, and resistant to external pressures like recessions and online retailers.
Selling a Transportation Business in Florida today can also help sellers command top dollar considering the supply and demand imbalance of available transportation businesses in Florida post-Covid-19. While the pandemic wiped out thousands of small Florida businesses in sectors like restaurants, gyms and beauty salons, Florida transportation businesses emerged stronger and more attractive in the eyes of their owners, their customers, and potential buyers.
The Transportation Sector in Florida
The State of Florida has invested heavily in making Florida one of the most efficient trade and logistics hubs in the world with rapid access to the rest of the United States, Canada, and every corner of Latin America. The annual arrival of over 100 million tourists also fuels big profits for owners of auto rental agencies and fleets of tourist buses and limousines.
“Today Florida is one of the most efficient trade and logistics hubs in the world.”
Experienced transportation business owners can tap into Florida’s lucrative transportation industry by acquiring an existing fleet, a trucking company, or a freight forwarding company located at one of Florida’s 25 major airports and 15 seaports including Miami, Fort Lauderdale and Tampa. The already strong demand for transportation businesses in Florida only increased following the initial Covid-19 pandemic in 2020.
Skills needed to Operate a Transportation Business in Florida
As in all states, the transportation business in Florida is highly competitive, and owners of the most successful transportation businesses have many years of experience and hundreds of satisfied customers who depend on these companies for the on-time delivery of building materials, consumer goods, food and beverage, medical supplies, manufacturing parts and other daily necessities.
Current owners thinking of selling a transportation business in Florida will want to know that potential buyers of the business have the operational knowledge, managerial skills and financial resources necessary to manage and grow the business for the next generation.
Most buyers of transportation businesses in Florida will pursue SBA financing, and most SBA lenders will want to see that the buyer has some knowledge or experience in the transportation business.
“Floridians depends on timely delivery of building materials, consumer goods, medical supplies, and other daily necessities.”
Ideally, a future owner of a transportation business in Florida would already have several years experience as an employee or owner/operator of a transportation business in their home state or home country. Many owners of established transportation businesses in Florida will only consider selling their business to a buyer who has a proven track record of transportation industry experience. Most SBA lenders will evaluate potential buyers through the same lens of experience and qualifications.
Best Cities For Selling a Transportation Business in Florida
For potential buyers open to relocating and living anywhere in the Sunshine State, sellers of auto cleaning businesses in Florida will be competing with other owners of similar business statewide. These buyers will be weighing several factors including a variety of demographic and quality of life metrics that will impact both their decision making process.
“Sellers of Florida transportation businesses will be competing with owners of similar businesses statewide”
Florida’s population of 23 million is spread throughout the state’s 67 counties, but the largest clusters of high net worth households paying top dollar for transportation services are concentrated in the southern half of the state along a ring of 14 coastal counties on the Atlantic Ocean and the Gulf of Mexico. This “golden horseshoe” of Florida demographics encompasses the 25 Wealthiest Zip Codes in Florida based on Average Gross Income.
“This 14-county coastal region is the Golden Horseshoe of Florida demographics”
This coastal region extends from Tampa/St.Petersburg on the Gulf side, south to Naples/FortMyers and down to the Florida Keys, east to Miami/Fort Lauderdale and extending north through the coastal communities of Boca Raton, Palm Beach, Jupiter, Port Saint Lucie and Vero Beach. Some of Florida’s most successful transportation businesses have their base of operations in this 14-county coastal region of the Sunshine State.
And, of course, no conversation about desirable areas to live and own a business in Florida would be complete without mentioning the Orlando metropolitan area. “The City Beautiful” is one of the fastest-growing metros in the country, and the influx of new residents creates ample opportunities for new and existing business owners.
“With over 2 million residents, Orlando is one of the fastest-growing metros in the country.”
Long known as a tourism mecca and home to theme park giants like Disney and Universal, Orlando’s economy is increasingly diverse. And world class infrastructure improvements like the new $3 billion Terminal C at Orlando International Airport facilitates domestic and international arrivals and intrastate travel with Brightline, a high-speed rail link between Orlando and South Florida metros like Miami, Fort Lauderdale and West Palm Beach.
Median Asking Price of Transportation Businesses For Sale in Florida
Once you have decided on selling a transportation business in Florida, it’s a good idea to work with an experienced and trusted Florida M&A advisor to get a better understanding of the current value of your business and a range of most probable selling prices to qualified buyers business with cash or some combination of cash and financing, either through an SBA 7(a) loan, seller financing, a conventional bank loan, a leveraged buyout, assumption of debt, or some other mutual buyer/seller arrangement.
According to the Florida database of businesses for sale, the median asking price for a transportation business in Florida is currently $599,000 for existing businesses generating over $250,000 in revenue and $150,000 in annual cash flow.
“The median asking price for transportation businesses for sale in Florida is currently $599,000”
The range of asking prices for Florida transportation companies extends from $249,000 on the low end to $4,950,000 on the high end for Florida transportation businesses generating over $250,000 in revenue and $150,000 in annual cash flow.
Median Annual Revenue of Transportation Businesses For Sale in Florida
With the right team, a modern fleet, solid supplier relations and an established customer base, transportation businesses in Florida can be great revenue generators for both current and future owners. According to the statewide database of businesses for sale in Florida, the median annual revenue for a Transportation business in Florida is $880,000.
“The median annual revenue for transportation businesses for sale in Florida is currently $880,000”
The range of annual revenue for Florida transportation companies extends from $566,000 on the low end to $6,100,000 on the high end for Florida transportation businesses generating over $250,000 in revenue and $150,000 in annual cash flow.
Median Cash Flow of Transportation Businesses For Sale in Florida
Established and well managed transportation companies in Florida can produce significant cash flow benefitting both the current owner and future owners of these businesses.
According to the official database of businesses for sale in Florida, the median annual owner benefit or cash flow for a transportation business in Florida is $264,000. As such, transportation businesses in Florida enjoy a median cash flow of 30% of annual revenues. ($264,000 / $880,000 = 30%)
“The median annual cash flow for transportation businesses for sale in Florida is currently $264,000”
The range of annual cash flow for Florida transportation companies for sale in Florida extends from $190,000 on the low end to $1,100,000 on the high end for Florida transportation businesses generating over $250,000 in annual revenue and $150,000 in annual cash flow.
Additional Resources for Selling a Transportation Business in Florida
Selling a Transportation Business in Florida is a major life decision that requires serious due diligence and sound advice from an experienced and trusted M&A advisor.
If you would like to schedule an initial consultation regarding your Florida transportation business, potential valuation and future steps, please call us at 305.763.4112, schedule an initial phone consultation, or use the contact form below.