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The 7 Decisions when Selling Your Automotive Business!
WANT TO SELL YOUR
- When? (Time Frame) Start the process early
e.g. Years before the sell-out if possible.
- Who to? (Targeted Buyer) Start the process early,
attract and target your buyer.
- How to? (It must be simple and lucrative for the both
the Buyer & Seller).
- House Keeping! (Start the process early, making it easier
for both the seller and buyer).
- Maximising Intrinsic value! (So both the seller and buyer
are delighted with the transaction)
- Selling Price?
- Involvement? support and length of time for hand over?
(Again Start the process earlier)
There will be more Automotive Businesses on the Market than Buyers…
If you look online you will see hundreds and hundreds of automotive businesses for sale right now, one site I visited had over 340 businesses for sale another site had over 900. It is certainly a cluttered environment to be selling in. I have been watching and studying this space for years and for that reason I decided to sell out in 2013.
Here are a few things to know…
Let’s look at this in more detail. Australia is on the crest of a demographic tsunami. Australia’s 5.3 million boomers reach retirement age over the next 15 years. Today, 43% percent of our workforce is made up of baby boomers, or those people born between 1945 and 1964 and a whole bunch of the 43% own automotive businesses.
Baby Boomers are retiring. In 2008, it was reported that more than 50 percent of the labour force for our repair industry across the country was made up of Baby Boomers. More than half of our industry is made up of Baby Boomers and over the next 15 years they will vanish from the work force.
Some small business owners are having to re-visit their timelines when it comes to selling; often a lot more time and research is required to get a business sale ready.
According to the VMB-RMIT, there are currently a mix of 60,000 businesses listed for sale, not just automotive businesses.
Business owners who are entering retirement and own small to medium size businesses are facing a challenging time when it comes to selling. For the past 11 years, the value of the small business market in Australia has been declining (VMB-RMIT).
Recent quarterly data published by the VMB-RMIT shows that businesses with a turn-over of less than $5 million have been the hardest hit.
The baby boomer generation is going to run out of time to effectively hand over their business to younger generations of buyers or get the best sale price for their business, according to research. Source: Pitcher Partners and Swinburne University.
Book a 20 minute call with Mark, if you require a smoother & sooner transition to selling your business!