Dealership Opportunities

Preparing Your Dealership for Sale

 All car dealers understand the importance of preparing a used car for sale. You must clean it, polish it, install new tires, make mechanical repairs and the list goes on. Dealers do all these things to a used vehicle because they know this will make the vehicle sell faster and for money.

THE SAME IS TRUE ABOUT SELLING A DEALERSHIP!

 Whatever the reason is for considering the sale of your dealership, there are certain steps you can take that will lead to more money you can keep of the sale proceeds. This includes what the income tax consequences of the sale.

 One of the best articles we have ever read about selling a business was written by Dr. Art DeThomas, professor emeritus of business at Valdosta State University. We will be happy to mail you a copy if you will call, fax or email your request with your mailing address. It will come in a plain white envelope. We will even mail it to your home if you are concerned about employees seeing it.

 Outside of Professor DeThomas' article, there are other things we recommend and are willing to help you with. The first is to start preparing for the sale early, preferably a year ahead. Not to say that there are some circumstances that this is not possible. In this case we can help make the most of what we have.

 Clean up your financial statement! Get rid of all the relatives salaries on the payroll, quit paying country club dues from the company, and any other unnecessary expense items that reduce the profitability of the dealership. Work real hard to sell more cars with a better gross. Push F&I income, extend warranties and anything else that will add to the bottom line. Run some service specials; pay bonuses for up-selling to produce higher ROs. We will be happy to review your financial statements and make recommendations for areas of improvement.

 Most buyers would rather pay more for a successful dealership than one that is in serious neglect. Blue Sky/Goodwill are probably the only areas you can increase the selling price of your dealership. Real estate usually sells for appraised value, parts are book value, used cars are wholesale value, fixed assets are usually at appraised value or close to it. It will make your dealership sell faster and for more money if you spend some time to have a better looking financial statement.

 Call us ahead of time. We feel that if we can prove ourselves to you by preparing your dealership for sale, we can earn the right to sell it when the time comes.

 

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