- Having an unrealistic price in mind.
When pricing their dealership, owners are often unrealistically high or low in their pricing. This will result in money being left on the table or running off the qualified buyers.
- Not seeing your business through the eyes of a prospective buyer.
An investor assesses the potential for future returns and what type of additional investments he must make in order to obtain the desired results.
- Attempting to sell to the wrong buyer and then not making the sale.
The best buyer is one who is ethical and will pay a premium price and respect your confidentiality. There’s no substitute for a thorough and knowledgeable search for a buyer that will meet your specific needs and be accepted for approval by the manufacturer.
- Negotiating your own sale.
Having a skilled negotiator and accomplished intermediary builds value for your dealership. It is very hard to represent your own best interests. Who obtains the most gross? The owner or the sales individual who reports to a manager?
- Providing incomplete information.
You need accurate information regarding the assets to be sold and the liabilities you want assumed. Missed details can derail a closing.
- From not understanding the process.
An owner’s time is best spent running the dealership while entrusting a professional to sell your business. The process requires experience, expertise and finesse to orchestrate a sale, facilitate legal documentation and complete the transaction.
