Are you contemplating your exit from your automotive business? Whether you’re getting ready to retire or you’re looking to move on to another business endeavor, you’ll need to determine how you plan to handle the transition. Should you sell your auto shop? Pass it on to a family member and retain a portion of the profits?  Should you close it? How do you decide?


At AutoCenter Sales, we’re here to help walk you through the process. We know selling an automotive business is a grand undertaking. We also know that to make the best decision for your needs, a team of experienced advisors is paramount. Below, we’re outlining a few considerations that will help you determine whether it’s time to retain or sell your auto shop when you’re ready to make your exit.


Worried Your Automotive Business Won’t Sell?

Do you own a small automotive business? Or how about a struggling auto shop? If so, you’re likely wondering whether a business sale is even a viable option. Here’s what you should know:


●        Micro Business owners. Small automotive businesses, though seemingly inconsequential, are still in high demand. If you have a loyal customer base, you have a valuable asset, and other entrepreneurs are more than willing to take it off your hands.


●        Lease expiration. Finding a buyer for an automotive business with a rapidly approaching lease expiration date may be a challenge—but it’s not impossible. Finding a high-quality buyer and presenting this to the landlord can often entice them to enter into an extension of the current lease or into entering into a brand new lease.


●        Declining profits. If your profits have taken a downturn you may think it’s impossible to sell your business. But, before you give up, talk to an experienced advisor who can help you see the whole picture and suggest the most appropriate course of action.


Though you might assume a struggling auto shop may be a difficult sale, that’s not always the case. With the right team of advisors behind you, there’s a solid chance you can locate an investor who’s willing to inject the necessary capital to turn things around. And again, if you have valuable inventory or other assets, there’s always the possibility of selling those, too.


Should You Retain Your Business?

If you’re hoping to take yourself out of the day-to-day operations equation but would still like to see profits flowing into your bank account, that’s understandable. Though, if you take this route, you may end up spending more time, effort, and money than you’d like. Here’s what you’ll need to consider:


●        Risk vs. reward. How much money do you stand to take home? If you retain the business but constantly need to inject more cash to keep operations flowing, is that what you really want? Ask yourself: Does the amount of money you stand to make justify the financial risk of hanging on to the business?


●        Time commitment. As much as you’d like to take yourself out of the picture, as a business owner, that’s easier said than done—we don’t have to tell you that. Do you want to continue devoting your time and mental energy to your auto shop, or are you looking for a change of mental scenery?


●        The price isn’t right. Are you retaining your automotive shop because you think you’re only going to get the going market rate for your business? Not so fast! Depending on your business’s current valuation and existing customer base, you might be in a position to command a higher asking price than you might imagine. Keep in mind you’ll need to work with an experienced automotive business broker for a full breakdown of your options and recommendations on your best course of action.


Looking to Sell Your Auto Shop? Contact AutoCenter Sales Today

Determining whether to retain or sell your auto shop is a big decision, and at AutoCenter Sales, we’re here to help you navigate the process. For over 25 years, we’ve been advising automotive business owners and buyers across the United States, and we’re ready to work with you, too. Our team of experienced business brokers can advise you on the best course of action for your needs and goals, plus, you get our extensive network of industry connections at your fingertips. To learn more about how we can help you sell your auto shop successfully, give our team a call at 800-874-5793 or reach out to us on our contact page, and we’ll be in touch!