If you’re thinking about putting your automotive business on the market, there’s a lot to consider. Selling a business is a complicated process, and often, emotional attachment to the establishment can make the entire endeavor feel overwhelming.
At AutoCenter Sales, we get it. Selling a business is a major decision and one you should never undertake without extensive forethought and planning. If, after mulling over your options, you’re still convinced selling your automotive business is the right decision for needs, we’re here to help you get the most out of your deal. Below, we discuss three valuable tips for maximizing the value of your sale.
Invest in Your Staff
Your team is the lifeblood of your business, and they’ll still be vital to the success of the company even after the new owner takes possession of it. That’s why investing in training and education for your staff is so critical.
Invest in your staff now, and you can immediately increase your profits as a result. When you give your team the training they need to perform their best work, not only does your business thrive, but your staff also understands that you truly value their contribution to your company.
This type of investment not only has the potential to yield a good return now, but it also communicates to prospective buyers the value of your staff. Because a well-trained, highly competent team will help ensure continued success for the business’s future owner, investing now will help you secure a more valuable deal in the future.
Ensure Your Books Are Flawless
Clean books don’t just help your business thrive in the present; they also help guarantee a satisfactory business deal in the future. Cleaning up your books allows you to see the big picture clearly — inventory, revenue, expenses, etc. — so you can identify which areas require the most intense focus before you list your business.
If you don’t have financial personnel on staff, you can outsource this one-off project to a professional bookkeeper. When your books are clean, you can then designate members of your team to maintain them going forward. Keeping clean and clear books, both now and ongoing, will help prospective buyers develop confidence in a potential purchase and help you stand out in a crowded buyer’s market.
It’s also important to note that you must be able to demonstrate to prospective buyers that your business is maintaining or growing profits throughout the selling process. If a buyer sees declining profits during a pending transaction, they may try to negotiate or choose to walk away from the transaction.
Formulate Your Exit Plan
When it comes to exiting your business, you need a solid plan; don’t make any assumptions about who will assume ownership or operation of the company — always ask.
If family succession is your goal and you hope your children might want to take over the business, inquire whether they’re interested. If they are, you’ll have time to formulate a plan for the transition that includes the necessary experience and training they’ll need to operate the company. If your family isn’t interested or they’re incapable of running the business, you’ll still have time to formulate an exit plan that allows you to meet your needs before you list your business.
Take the time to evaluate your future priorities in terms of financial goals, retirement objectives, or other investment opportunities you may be interested in pursuing. Do you want to transition out of the business slowly? Do you want to retain part ownership as an advisor? Are you looking to retire and sell your business outright? Do you need to secure a certain dollar amount from the sale?
Once you have your objectives clearly outlined, working with an experienced automotive business broker can help you identify the best course of action to meet your needs. At AutoCenter Sales, it’s our goal to not only help you prepare to sell your automotive business but to also help you secure the best deal on the sale. For over 25 years, we’ve been facilitating transactions between automotive business sellers and buyers, and we’re ready to help you successfully sell your business too.
Ready to Sell Your Automotive Business? Contact AutoCenter Sales
If you’re interested in selling or buying an automotive business, get in touch with our team at AutoCenter Sales. As one of the top automotive business brokerages in the United States, we’ve facilitated thousands of transactions over the last 25 years. Our extensive pool of industry connections sets us apart and allows our team to help you secure the best deal whether you’re buying or selling.
To learn more about our services or discuss your needs with an agent, call our Eden Prairie, MN office today at 1-800-874-5793 or send us a message, and we’ll be in touch.