The Biz Blog
April 14, 2017 by Arthur B. Kessler
Owners of auto repair businesses need to do a number of things in order to get their businesses ready for sale.
The books and records of the business need to be updated and kept in a form acceptable to buyers and lenders.
If there is a cash component to the business, a cash record book must be maintained. While it is not absolute proof of not reported cash income if it matches what a buyer sees during due diligence it lends substantial credibility to the claim of the Owner.
It is vital that mechanics working in the business are trained in repair of late model vehicles with particular emphasis on electric/hybrid vehicles. Late model vehicles have so much computerization that mechanics need to be retrained to deal with the computer aspect of late model vehicles.
It is very important to price the business in line with the market. Over pricing a business defeats the purpose of a sale. Buyers search the internet and compare gross, net and price. If the pricing is not competitive buyers will pass on the business without taking a thorough look.
Lastly, an Owner must make sure that the broker they retain to assist in the sale of the business co-operates with other brokers. Failure to make sure the broker co-operates means more than 90% of potential buyers will not have access to sales information and will not get the Owner what he wants, which is a sale at the best price possible.
Arthur Kessler BizEx Business Brokers 310 882-2200 x126. Please call or email me at LinkedIn if you have any questions.
Auto Repair, Parts and Services, Automotive
