November 20, 2019  
 
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Selling a Company

 

Selling an Auto Auctions Business

A good business is about more than dollars and sense. To make your auto auction business what it is today, you've had to fully invest yourself in its success. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.

Personal and professional concerns surround the sale of an auto auction business. In our experience, a common owner concern is how the sale will affect customers and employees.
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However, serious buyers also understand the value of a good auto auction business. So for auto auction business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.

Selling Time

Hoping for a quick auto auction business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. To adequately prepare your business listing, plan on spending six months to a year prior to listing. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.

Workforce Concerns

As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. When that happens, it's best to have a frank conversation with your team rather than allowing rumors to circulate through the organization. Above all else, it's imperative to encourage your workers to maintain a positive attitude and work ethic. If you're having trouble navigating the employee minefield, consult a business broker for advice.

Legal Considerations

It's obvious that you're going to need to hire an attorney to finalize the sale of your auto auction business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.

More Exit Planning Articles

Given your interest in exit planning and in auto auction businesses, you might find these additional resources to be of interest.

Terms of Investment Banking Agreement

Marketing an Auto Auctions Business

Renewing Leases Prior to Selling a Business


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Still have questions about selling an auto auction business? Ask away and we'll do our best to get you a timely reply. We also welcome any tips or advice you'd care to share with others.


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