Exit Planning Advice By Market
Selling an Auto Service Club
When it's time to sell your auto service club, your future plans depend on your ability to get the highest possible sales price. Here's how to do it . . .
Dire economic forecasts have forced many auto service club sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
If you're looking for a reason to wait to put your business on the market, you'll find it. With hard work and dedication, your auto service club can be sold at or above fair market value right now.
Dealing with Your Emotions
Business sellers sometimes struggle to handle the emotions of a sale. You probably have good reasons for selling your auto service club now, but that doesn't make the emotions you will experience any easier. It's important to allow yourself time to process your emotions during your exit. At the same time, it's helpful to consult with people who can help limit the influence of your emotions on negotiations and other aspects of the sale process.
Legal Concerns
We run into a lot of auto service club sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
How to Skillfully Address Buyer Concerns
Buyers can present challenges, especially during the due diligence stage. The questions auto service club ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
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