Understanding the buy-sell process is important for dealership owners considering their future — whether planning to sell or grow through acquisitions. A professional broker, often called a buy-sell advisor, can help dealers navigate this process, offering expert guidance at every stage. Their expertise can simplify the transaction and help ensure a smooth, successful closing. THE ROLE OF A BROKER IN THE DEALERSHIP MARKET Selling a dealership involves much more than finding a buyer. It’s a complex, multi-step process requiring preparation, negotiation and careful management to protect confidentiality while maximizing value. A broker’s engagement can make all the difference in guiding you through this journey, ensuring your interests are protected from start to finish. Clients should expect a hands-on, personalized approach focusing on each dealership owner’s specific needs. STEPS IN THE BUY-SELL PROCESS Here’s an overview of the key stages involved in selling a dealership and how a broker can support dealers through each one: 1. Preparation and Valuation: A smooth sale starts with a well-prepared business. Buy-sell advisors work closely with dealership owners to gather financial data, clean up operational issues and determine a market-driven valuation. This ensures the dealership is presented to potential buyers in the best possible light. 2. Confidentially Marketing the Dealership: Brokers craft a tailored marketing strategy to present the dealership confidentially to a select group of qualified buyers. Their outreach ensures that only serious parties gain access to your sensitive information. 3. Negotiations and Letter of Intent (LOI): Once offers are generated, the negotiations begin. A broker helps navigate these negotiations to ensure both parties agree on key terms, such as purchase price, long-term contracts and real estate considerations. The goal is to create a win-win situation for the seller and the buyer. 4. Due Diligence: After signing the LOI, the buyer conducts a thorough review of the dealership’s financials, contracts and operations. This phase requires careful management, but with experienced oversight from a buy-sell advisor, potential issues can be addressed promptly, keeping the deal on track. 5. Definitive Agreements and OEM Approval: The Definitive Purchase Agreements outline the deal’s final terms. Brokers play a proactive role in expediting this phase, interfacing with both attorneys, assisting with obtaining Original Equipment Manufacturer (OEM) approval — a critical step for all dealerships — and keeping the transaction moving toward closing. 6. Closing: During the final stage, brokers remain fully engaged to ensure all documents are in place and that any post-closing requirements are met. This hands-on approach keeps the momentum going, guiding the deal to a successful conclusion. Navigating the Dealership Buy-Sell Process How a Broker Can Guide You to a Successful Sale BY JAMIE FARLEY, PARTNER, MARK SHACKELFORD SR., PARTNER, AND MARK SHACKELFORD JR., PARTNER, PERFORMANCE BROKERAGE SERVICES 18
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