The transportation industry is increasingly turning towards merger and acquisition opportunities as a desired growth strategy.

Why?

The traditional method of increasing top line revenue through sales initiatives is still one of the greatest challenges facing transportation companies today. Hiring and retaining top notch sales talent has become increasingly difficult. The sales cycle associated with new opportunities can be very lengthy, in many cases over a year.

In addition, end customers are looking to consolidate their transportation spend and want to deal with companies that have a multi-market footprint. This makes growth via acquisition a fast way to plant a flag in the new market customers want them to be in, versus the "if we build it they will come" alternative.

As a result, the industry’s increasing M & A activity bodes well if you are contemplating the sale of your company. The challenge is how to find, present and close the sale with the right buyer.

A major consideration is discretion. You don’t want your existing customers getting wind that you are selling. This creates uncertainty in their eyes. With relationships, not contracts, being the real glue holding you together, customers have alternatives. In this industry they don’t have to look very far, as competitors are always knocking at their door.

Engaging an investment banking partner that truly understands the transportation industry, your business model and has a solid track record of successfully selling companies is a winning strategy. Applying a laser like approach to discretely find the right buyer that is motivated and financially sound, all the while protecting your interests, will lead to a successful transaction. There are also strategic buyers outside the industry that can be approached, and a seasoned investment banking firm that has relationships with these buyers widens the scope of the search to find the right candidate.

These elements, plus the application of marketing and positioning expertise throughout the process will increase the likelihood of attaining a premium price for your business.

Planning your exit strategy may be the most important business decision of your career. With the transportation industry moving towards consolidation, and favorable taxation rates still in effect in 2012, your timing could be perfect.