Selling a Passenger Transportation Business

Most passenger transportation businesses sell on a multiple of cash flow. Smaller owner-run fleets are often priced on SDE, while larger operations are priced on EBITDA. Value usually moves with payer stability (facility and school work tends to be steadier than spot charter), dispatch coverage, near-term fleet replacement, claims history, and driver retention. If a buyer sees major capex coming, or insurance volatility, they often price that risk in. You can sanity-check your range with Rejigg’s free valuation calculator and then refine it with your fleet and payer mix details.

SBA 7(a) loans are common for transportation acquisitions, but lenders tend to go deep on safety, insurance, and cash collection. Most lenders ask for three years of tax returns, clean financials, a fleet roster, insurance loss runs, key contracts, and proof that billed trips turn into deposits, such as AR aging and denial trends for brokered or NEMT work. They also look at owner dependence: who runs dispatch and compliance day one. You can model payments and down-payment scenarios with Rejigg’s SBA loan calculator before negotiating price and terms.

You do not need a broker, but you do need a controlled process. Brokers often charge 5–10% for buyer outreach, NDAs, and diligence management. If you run it yourself, focus on staged disclosure: share the operating summary first, then release customer names, rate tables, and insurance details only after a buyer is vetted and under NDA. Rejigg gives sellers the core workflow: pre-vetted buyers, digital NDAs, a secure data room for contracts and loss runs, and offer comparison. Start with the finding buyers guide.

Many well-prepared deals close in 3–6 months, but transportation can take longer if broker re-credentialing is required, permits need re-application, or lenders get cautious about claims history. The fastest deals usually have operational diligence ready early: fleet roster and replacement plan, loss runs, key contracts and SLAs, dispatch coverage documentation, and AR and denial reporting for program work. Staged disclosure helps keep momentum. Rejigg supports this by letting you share the overview first and unlock deeper documents only as buyers get serious.

Early requests in passenger transportation usually focus on operational proof. Expect to share a fleet list by vehicle type with mileage and condition, maintenance history or a shop summary, insurance policies and loss runs, key contracts with service level requirements, and a compliance calendar for permits, inspections, and driver credential expirations. Buyers may also ask for on-time performance, cancellations and no-shows, and dispatch coverage, including after-hours. Rejigg’s data room supports this sequence so you can share enough to build trust without sending sensitive files by email.

Most buyers expect the fleet needed to fulfill contracts to be part of the deal, but pricing depends on title status, condition, and whether units are specialty vehicles like wheelchair-accessible vans or cutaways. Buyers also separate asset value from replacement risk, so high mileage can still mean a discount if capex is near-term. Avoid late renegotiation by presenting a fleet schedule with role, mileage, lien or payoff info, and a 12–24-month replacement forecast. Rejigg’s offer comparison dashboard helps you compare bids that treat vehicles, payoffs, and credits differently.

Working capital is often where transportation deals get tense because cash timing varies by payer. Facilities might pay weekly or net-30, broker or NEMT programs can run slower due to denials, and private pay is usually immediate. Many buyers use a target working capital at close and adjust the purchase price up or down based on actual AR and payables. Fuel cards, maintenance payables, and payroll cycles also matter. Rejigg’s deal tracking helps you compare offers that look similar on price but differ on AR treatment and closing adjustments.

Earnouts and seller notes show up when buyers see retention or compliance-timing risk. A common example is a holdback until a broker re-credentialing is approved, or until a key facility renews after the sale. Seller financing can also help an SBA buyer bridge a down payment, depending on lender rules. Terms matter as much as price in this industry because routing can change quickly after a service issue. Rejigg’s offer comparison tools help you weigh cash at close, notes, earnouts, and contingencies side by side.

Yes. Many facility, charter, and school-adjacent relationships run on performance and habit, even when the paperwork is short-term or informal. Buyers still need evidence that volume is stable: renewal history, service metrics like on-time performance and complaints, rate sheets, and a clear explanation of how trips get routed to you. Brokered programs also need a clean ownership-change and re-credentialing plan. Rejigg’s staged diligence flow lets you lead with routing and performance, then share contract PDFs after NDAs.

It depends on your state, city, and payer programs, and buyers usually assume change-of-control steps are required. Some permits can transfer; others require re-application, and broker programs often require re-credentialing that can take weeks. Build a simple matrix by market that lists required permits, inspections, renewal dates, transferability, and who owns each portal login. Put it in your data room so diligence does not stall. Rejigg helps you organize and share these items securely during due diligence and closing.

Insurance is a major swing factor in passenger transportation, so buyers look hard at loss runs, deductibles, required limits, and premium trend. They also want to know how quickly you can adjust pricing or shift mix when premiums jump, which varies by contract. Operational controls matter too: driver screening, incident reporting, and subcontractor COI verification. If you can show how you handled a recent premium increase, buyers are less likely to discount for fear. Keep loss runs and policies organized in Rejigg’s data room so you control access.

Fleet-heavy businesses often have large depreciation, which can drive taxable gain and influence how buyers and sellers want to allocate the purchase price between equipment and goodwill. Asset sales and stock sales can land very differently for taxes and liability, and state rules can add sales tax on certain asset transfers. Payroll tax exposure can also come up if worker classification is questioned, especially with heavy subcontracting. Bring your CPA in early and model scenarios before accepting terms. Rejigg’s checklists in negotiate a deal help you surface issues before LOI.

Many transitions are 4–12 weeks with a structured handoff, but longer can make sense if key facilities are relationship-driven or if broker re-credentialing is pending. Buyers want specifics: who owns dispatch on day one, who handles 6 a.m. complaint calls, and how driver communication will work. Put it in writing with hours, responsibilities, and escalation rules so expectations stay tight. Rejigg’s transition planning guide helps you scope this clearly.

Confidentiality matters more in transportation because rumors can cost you drivers and routing. Use staged disclosure: share high-level summaries early, then release customer names, rate tables, broker portal details, and insurance documentation only after a buyer is vetted and under NDA. Be cautious with site visits until you are close to LOI, since loose talk can travel fast in dispatch and driver circles. Rejigg supports this with pre-vetted buyers, digital NDAs, and document permissions in the data room, which is safer than emailing PDFs around.

Common surprises include vehicle lien payoffs that were not modeled correctly, working-capital shortfalls from slow-paying brokers, unresolved claims that trigger lender concerns late, and contracts that require consent to assign. Fleet condition also creates late price fights when deferred maintenance shows up during inspection. You can reduce renegotiation risk by disclosing fleet status and replacement needs early, and by keeping a tight diligence list. Rejigg’s due diligence checklist and document tracking help keep these items from surfacing at the finish line.

Compare total value and risk, not headline price. In passenger transportation, the risk is often in the terms: earnouts tied to account retention, on-time performance, or broker credential approvals, and seller notes that assume cash flow stays steady through renewals and insurance changes. Longer timelines can also increase the odds of driver churn or account drift while everyone waits. Break each offer into cash at close, probability-weighted contingencies, and your post-close obligations. Rejigg’s deal tracking and offer comparison dashboard help you line these up side by side.

It depends on your mix and your market. School routes often have natural decision points around the academic calendar and contract renewals, while charter and event work can be seasonal, and buyers may want to see peak-season results. For NEMT-heavy businesses, pay attention to payer recertification cycles and scheduled rate or policy changes. Many owners get the best outcome when trailing performance is stable and fleet replacement needs are planned and documented. Rejigg’s materials in prepare to sell your business can help you map timing to these cycles.

Open with a tight 30-minute operator walkthrough: service and payer mix, how you bill and collect, dispatch coverage, fleet by role, driver onboarding timeline, and the top contract requirements. Then stage diligence by releasing deeper items, like loss runs, contract PDFs, detailed AR, and compliance files, once the buyer is serious. This keeps calls focused on how the business runs rather than document hunting. Rejigg is built for staged sharing with NDAs first and controlled data room access after.