Selling an automotive business is a significant undertaking and one that requires substantial planning and communication. If you’ve recently had a business deal fall through, you know just how frustrating and disheartening it can be. But selling your business doesn’t have to be difficult when you know how to approach the process correctly. At AutoCenter Sales, we know many well-meaning deals fall through due to communication mismanagement, and we’re here to help you change that.
Let’s discuss a few things to keep in mind with regard to communication throughout your automotive business sale.
Continue Running Your Business as Usual
When you’re in the process of selling your automotive business, potential buyers are keeping a close eye on your traffic and revenue. To keep those buyers engaged, it’s imperative that you run your business as you usually would.
Continue your marketing efforts, offer sales and promotions, and manage day-to-day operations as always. Even though you’ve got selling on the brain, your business shouldn’t reflect that. A significant drop in business revenue is a surefire way to encourage a potential buyer to pull out of a pending deal.
Disclose Everything to Potential Buyers
Is there anything about your business you don’t make obvious to potential buyers? While you might believe something is a non-issue, your potential buyer may not feel the same. If you fail to disclose certain things about your business, your prospective buyer may regard that as an attempt to hide unfavorable circumstances.
Being open and communicating frequently signifies to potential buyers that you have nothing to hide.
Expect the Unexpected
Even when you think nothing can possibly go wrong with your sale, something always does. You’ve undoubtedly witnessed this unfortunate circumstance multiple times during your day-to-day operations in your current business.
And, just as you must be prepared to handle the unexpected in your daily operations, you must be prepared to handle surprises during your business sale. You may not know how to handle the situation personally, but when you work with an experienced automotive broker – like our team at AutoCenter Sales – the onus doesn’t fall on you alone.
We’ll help you handle unexpected occurrences smoothly and efficiently, so you can move forward with a successful business sale.
Know the Value of Your Business
You will need to understand the actual worth of your business to help you choose a number that feels appropriate for all the investments and hours of hard work you have put in. Determine a fair market-related value so you don't price the business too low and risk losing out.
A fair valuation will also prevent potential buyers from trying to lowball you on your asking price and give you a better offer more aligned with your objectives.
Have a Structured Plan
Deal structuring is another critical consideration, which helps combine negotiation skills with communication for your industry to help ensure your and the buyer's needs are met.
The structure of a good deal isn't just based on the asking price; there are other aspects, including:
● How the transition is structured
● The down payment required for the buyer
● Any non-compete agreements, if they are applicable
● If there's an availability of seller financing and any specific terms around this
Choose the Right Broker
Selling your business is a big decision, and you've most likely put years into it to make it profitable through streamlined strategies. Selling can be a great way to get a high return on your investment, so you want to work with an experienced broker with a proven track record of success.
Brokers are specialists, with many of them already having owned successful businesses. Because of this, it helps enable them to give you leading industry knowledge and solid guidance you wouldn't normally have.
They can offer you expert assistance, advertising, help with legal documentation, and a marketing plan, so don't just settle for anyone.
Planning to Sell Your Automotive Business? Partner With AutoCenter Sales
At AutoCenter Sales, we help automotive experts buy and sell their businesses successfully. Our knowledgeable team has over 25 years of experience brokering automotive companies of all kinds, and we’re here to guide you through the process, too.
Our extensive network of industry connections allows us to help you solve your most pressing business issues so you can get the value you deserve. If you’re ready to take the next step in your automotive business sale, reach out to our team at 800-874-5793, or message us on our contact page.