First time visitor? Start Here Search

Posts Tagged ‘Selling an Auto Dealership’

Resolving Value Disconnect between Buyers and Sellers of Auto Dealerships

In my previous post “2017 in Review: Trends in Retail Auto Mergers and Acquisitions,” I highlighted an all-too-familiar and continuing trend: the battles between buyers and sellers over valuation — battles that arise from what I like to call the “value disconnect.”

Sellers, who naturally want to get top dollar for their dealerships, are often reluctant to admit annual sales increases or operational efficiency haven’t been the same as in years past. Buyers, who naturally want to pay as little as possible, use this fact in an attempt to negotiate a lower price. Bringing the two sides closer to a reasonable valuation of a given dealership can be one of the biggest challenges in the negotiating process.

Unfortunately, finding a phrase to reflect the source of this friction (the phrase “value disconnect”) is far easier than pining down its causes or finding a “go to” tactic to combat it. In this post, I examine the causes of the value disconnect, separating the causes attributable to the seller from those attributable to the buyer, and I offer guidance on how to

Top 5 Don’ts When Negotiating the Sale of an Auto Dealership

You own a car dealership, and you want to sell it. Of course, you want to get the best price and terms possible. The question is, how? In my previous post, Top 5 Do’s When Negotiating the Sale of an Auto Dealership, I presented the five best practices to negotiate the sale of a car dealership and get everything (or nearly everything) you want. In this post, I help you steer clear of common pitfalls that can sink the deal or keep you from getting what you really want out of it.

Selling An Auto Dealership

1) Don’t hide from the reality of what your company is.

The strengths of your auto dealership are easy to see, because the dealership is your business and you have put your heart and soul into it. What is more difficult is to see what may not be working as well as it could, or areas where your business is challenged. Challenges may be limitations in terms of personnel, location, business environment, or even personal bias.

Since prospective buyers will

Top 5 Do’s When Negotiating the Sale of an Auto Dealership

You own a car dealership, and you want to sell it. Of course, you want to get the best price and terms possible. The question is, how? Here, I present five best practices to negotiate the sale of a car dealership and get everything (or nearly everything) you want.

Handing over the keys when selling an auto dealership.

1) Take an Honest Look at Your Dealership
Before telling anyone that you are thinking about selling your dealership, scrutinize it from the perspective of a potential buyer. You will be dealing with prospective buyers whose prime objective is to point out everything that is wrong with your dealership in an effort to justify paying less for it. Evaluate your dealership honestly and fix the problems or at least prepare a response to issues that will likely be pointed out during negotiations.

2) Know What You Want
Understand your ultimate objective. That’s easy, right? To get the most money. Well, price maximization is certainly a major consideration and is perhaps the