5. When Buying A Trucking Company, Check The Trucking Company’s Overall Assets…
If there was ever a word that makes owners and accountants alike cringe it is this one, but for entirely different reasons. Assets what is it? People often use that word without really understanding its full meaning. I don’t claim to be an English scholar (far from it), but I do know you need to be well aware of the business’s overall value when buying a trucking company. You need to know everything that is included in the sale/purchase.
So then, what is actually meant by assets and its overall value? Just that, when you figure everything out, bundle it all together and add it together, what is included and what is it worth? What is the actual net worth of the whole business? Net worth simply is the combined total assets, excluding exterior liabilities of the company. Gross is the total worth before taxes and such expense have been deducted.
Assets on the other hand can be any one or combinations of many different categories. But should fall under one of these three categories: intellectual property, intangible, and tangible. Some of the basics include actual cash, the physical property/buildings, equipment, trucks and trailers, even patents and logos.
When buying a trucking company you need to know all of these things and make sure they are actually listed in all the legal documents. For example if you were to buy a well-known trucking company but failed to include the logo (on the assumption it was included), you might be opening yourself to lawsuits or be forced to pay royalties to the original owner. This means you need to be well aware of everything they own, and make sure it is all documented and accounted for.
Source: : www.manifesta9.be
