Exit Planning Advice By Market
Selling an Auto Starting Services Business
It's a misconception that no one is buying auto services businesses these days. Savvy entrepreneurs see auto services business opportunities as a path to short-term profits and long-term growth. Here's what you need to know to get a fair price for your company.
The auto services business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Too often auto services business owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Why Confidentiality Matters
Highly publicized auto services business sales are risky auto services businesssales. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. We recommend consulting a business broker to learn how you can simultaneously identify prospective buyers and maintain a confidential sale environment.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell an auto services business without outside assistance. Although it's wise to recruit a business broker, brokerage isn't your only concern. Other early hires include the professionals you will need to valuate the business, prepare financial statements and navigate legal considerations. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Pre-Sale Checklist
The pre-sale checklist for an auto services business is long and is full of critical tasks that will likely determine the success (or failure) of your sale. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
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