Exit Planning Advice By Market
Selling an Auto Diagnostic Equipment, Parts, and Supplies Business
At first glance, an unstable economy would seem to be an unfriendly atmosphere for an auto diagnostic equipment, parts, and supplies business sale. At Gaebler, we think it's a great time to sell an auto diagnostic equipment, parts, and supplies business. Here's why . . ..
It's a fact: Successful business sales take time.
Too often auto diagnostic equipment, parts, and supplies business owners fail to receive fair market value for their businesses. That's unfortunate because all it takes to get a fair price in today's market is ample planning and an awareness of what's important to buyers.
Tapping Into Business Networks
There are a lot of different places to look for auto diagnostic equipment, parts, and supplies business buyers. To advertise your sale to the widest possible audience, consider a listing on BizBuySell.com or other top online business-for-sale listing sites. More focused prospects are typically found within industry networks. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Your broker may be able to offer strategies for promoting your sale within your network while maintaining some remnant of a confidential sale.
Average Preparation Time
There are no effective shortcuts for selling an auto diagnostic equipment, parts, and supplies business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Unless you have already started planning for your auto diagnostic equipment, parts, and supplies business sale, it's going to take at least six months to prepare your business. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized auto diagnostic equipment, parts, and supplies business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
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