Marc Spizzirri's, Sr. Managing Director, article 'Is It Time to Sell My Dealership' has been published on Auto Dealer Today's website. His article delves into the considerations dealership owners should take before taking the step to sell their business. See below for an excerpt from the article.
Every dealer has fantasized about a highly successful exit. After a lifetime preoccupied with building the business, it can be difficult to imagine a life without it. Initially, dealers typically apply a quick financial analysis to the decision. They make an assessment of their dealership’s market value and evaluate their current lifestyle and the cost of maintaining it. They then consider the range of potential investment returns on their new post-sale cash position, then attempt to reconcile their available investable cash with lifestyle maintenance, and then go back to selling cars.
The sales activity in the franchise dealership world these past few years shows that many dealers have taken this analysis further than just fantasy. Dealers indulge themselves by asking, “Wouldn’t it be nice to mitigate the risk of running the business?” or “Wouldn’t it be prudent to take some money off the table and relieve the worries about the financial future?”
Many industry participants believe that we are approaching the end of the current upcycle in the economy and the car business, and that the time to sell is now.
Click here for the full article.