This is Part 2 of two-part series analyzing dealership sales trends in the heavy-duty trucking industry. Part 1 was published yesterday and is available here. In today's piece, we like to look at tried and true strategies that remain vital for maximizing the value of a dealership and streamlining a transaction.
Alexander Graham Bell said, “Before anything else, preparation is the key to success.” To combat the ever-changing market conditions, preparation remains paramount. By properly preparing your business for a sale, you will enhance its marketability and expand the buyer pool.
Buyers are more inclined to evaluate an acquisition target that is well-presented and offers the opportunity to engage in a seamless transaction. Overall, it will maximize the value of your business and increase the likelihood of a successful sale.
Here are some major steps to prepare the business for a sale include:
[RELATED: Smart data analysis can expand sales with existing customers]
By equipping the buyer with the data required for analysis, it ensures that you receive an informed offer. Buyers may request financial statements, an asset list, inventory reports, real estate data, a description of vendor contracts, management and employee information, dealer/franchise agreements, etc.
We always advise our clients to surround themselves with a selling team of their trusted advisors to safeguard their best interests. Comprised of an attorney, accountant, financial planner and dealership broker or buy-sell advisor, ideally, your team will have experience with buy-sells in the commercial truck industry. The advisory team will remove the selling process from the dealership to limit the risk of a confidentiality breach and allow you to focus on maximizing the performance.
