Decrease Risk to Sell a Warehouse Company

Share on linkedin
Share on facebook
Share on twitter

One of the best ways to make your warehouse or distribution company attractive to potential acquirers is to decrease your operational risk.  We’ve all heard the phrase, “Don’t make your problems my problems.”  This statement is especially true with regards to selling your warehousing or distribution business.  

Prior to selling your business, it is critical to look at the company through the eyes of a potential acquirer.  Is the warehouse floor covered in packaging materials and other debris creating trip and fall hazards for employees?  How does your insurance “mod” compare to the industry?  Have you had a variety of workers compensation claims?  What about your employees’ driving records?

Just as your children (and their actions) are viewed by outsiders as a direct reflection of your parenting style, your employees and their actions are viewed by potential acquirers as a reflection of your ownership style.  Do you vigorously screen new employees?  Do you regularly test for drug and alcohol use?  How strict are you in enforcing these policies?

In order to sell your company, you must be critical of your operations and improve them to the standards of a potential acquirer.  Remember, upon completion of the acquisition of your company, your track record becomes the buyer’s track record and the habits (good or bad) of your employees become the habits of their employees.  

If you desire to sell your warehouse or distribution company, start now by reviewing your operations with an eye towards risk.  Be critical of the company as if you were the acquirer, not the owner.  It’s the first step to maximizing value and achieving a successful transition.