5 Most Frequent Mistakes
- Having an unrealistic price in mind. Owners are often unrealistically high or low in pricing their own dealership, resulting in money left behind – or no deal at all.
- Not seeing your business through the eyes of a prospective purchaser. Whether you’ve invested 5 years or a lifetime in your dealership, an investor assesses the potential for future return, not the value of your sweat equity.
- Thinking you can best negotiate your own sale. In the automotive industry, representing your own best interests is extraordinarily difficult. Once an owner’s initial price is rejected there is no where to go but down. Skilled negotiation by an accomplished intermediary builds value far beyond the fee arrangement.
- Attempting to sell to the wrong buyer – and not making the deal. Many owners believe the best buyer is an employee or a local competitor. In fact, the best buyer is the one who will pay the most, close fast and maintain confidentiality. These are rare. There is no substitute for a thorough and knowledgeable market search for the most appropriate buyer – the one who will meet your own specific set of needs.
- Being impatient. The commitment required to orchestrate a sale, facilitate legal documentation and negotiate complex factory approvals is time consuming and difficult. Talent, expertise and finesse are required. An owner’s time is better spent running the dealership while entrusting a professional with the management of the transaction.
