Buying or selling a dealership is unlike any other business transaction.

When you combine the diverse operations of a dealership’s departments, plus its relationships with manufacturers, the result is a complex process that can surprise buyers and sellers alike; and not always in a pleasant way.

We’ve been involved in numerous dealership sales and acquisitions, so we’re experts at eliminating the stress and anxiety for both buyers and sellers.

Points to Consider Before Selling

1. Get your head in the right place first.

Selling a business isn’t just about financials – it can often feel like you’re selling a part of yourself – and putting up a ‘for sale’ sign can be taxing. So prepare yourself mentally for this, and think deeply about your end game before making any decisions.

What do you want to get out of selling? Is your business ready? Are you ready?

Whether you’re planning to retire, looking to relocate, ready to try something new, or faced with other circumstances (like ill health) take some time to mentally prepare.

Make sure selling is the best move for you, and for your business.

2. Get your lawyer or advisor involved from the start.

If you’re selling your business, your advisor or lawyer can source useful documents like a letter of intent (to help protect your information when sharing details with interested buyers), a non-disclosure agreement (NDA), and confidentiality agreements. They can also review your records before you disclose anything to a potential buyer.

3. Get your house in order.

Gather together all your business documents and ensure they’re up to date. Having your house in order will give you the confidence to thoroughly understand your business before you start advertising, plus it will help interested buyers with their due diligence.

You’ll need to compile:

• Financial records – profit and loss statements, bank loans, forecast financials, and a breakdown of outgoing costs.
• Commercial information – supplier accounts, registration papers (for your ABN and other permits), asset and insurance details.
• Operation documents – business history, supplier information, stock inventory lists, strategy, procedure and process documents, rosters, and marketing materials.
• Legal details – staff and customer contracts, any franchise agreements, leases, or health and safety guidelines.
• Forecasting documents – anything that shows intellectual property, revenue growth, or favourable market conditions to help buyers see your business as a good investment.

4. Negotiate and agree to the finer details.

Once you’ve found the right buyer, you’ll need to negotiate on a range of things and have a contract drawn up. This should include the sale price and deposit amount, settlement period, handover details and training, trading restrictions (to assure them you won’t immediately start competing with them), relevant assets, liabilities, arrangements for existing staff, and any other applicable details.

A contract will be drawn up when you’re both in agreement, and your lawyer and the buyer’s lawyer will need to check it.

Our network of qualified buyers – each looking for the right opportunity – continues to grow every month.

That’s why we need your dealership or dealer group platform. We have public and privately held dealer groups looking for specific franchises in certain geographic locations throughout the country.

We also have private equity groups that have partnered with proven dealer operators, and are looking for additional acquisition opportunities throughout the country. Contact me directly for a confidential discussion about the kinds of opportunities this might present for you.