Optimizing Business Exits
Selling a RV Dealership
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, RV dealerships haven't heard the news and are reporting steady action on the business-for-sale market.
The economy isn't the only thing that is uncertain these days. So are RV dealership buyers, many of whom are waiting to pull the trigger on their next acquisition.
The good news is that ambitious entrepreneurs continue to see RV dealerships as a smart business investment -- and the market is rewarding owners who are willing to invest time and energy in their sale.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa RV dealership: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Using recent RV dealership sales as its foundation, the market method factors market conditions into the valuation process. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.
Working with Appraisers
There is no substitute for a qualified appraisal in the sale of your RV dealership. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Following the appraisal, you may choose to delay your sale until you can increase the value of assets and revenue.
Selling Time
It's rarely possible to sell a RV dealership in a month or two. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your RV dealership, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
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