Dire economic forecasts have forced many truck dealership sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
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Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your truck dealership.
During due diligence, the buyer will undoubtedly conduct his own appraisal of your truck dealership's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your truck dealership.
Timing the Market
Timing is everything when it comes to selling a truck dealership. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on truck dealerships. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
In a truck dealership sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a truck dealership sale. If you need to compensate employees to assist with the sale, their services should also be considered.
Given your interest in exit planning and in truck dealerships, you might find these additional resources to be of interest.
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