Some business owners see the sale of their business like one would when they win the lottery. They have dreams of a number they’d sell for and plan how they’d spend their winnings. But when they actually go to sell their company, owners are often surprised to find out that their business is worth much less than what they were thinking.
Read on to learn how to correctly value your automotive business so your exit strategy can be realistic.
The truth about the market
For any business owner, it’s easy to get swept up in the idea that your automotive business is worth just as much or more than another similar business was recently sold. It’s also easy to get a higher value locked in your head that doesn’t coincide with the market. And some owners are so committed to their number that they decide to wait on the market, thinking it will catch up to their expectations.
This strategy isn’t wise. If you’re waiting for the market to catch up with what you think your business should be worth, you might have to face the reality that you’ll have to work much longer than you thought. Remember the recession in 2008? It’s been almost a decade, and some business owners are still trying to get the value back in their business.
Realistic mindset
When you’re thinking about the true value of your automotive business, it’s best to be realistic and make sure your bottom line is aligned with market realities. And while you think you may have a pretty good idea of what your business is worth, experienced advisors will show you that there might be more things to consider than just the price.
If you want to get a more realistic view, working with experienced advisors and brokers will help. For example, at AutoCenter Sales, we have professional brokers who will help you set goals and advise you as you consider timing – and other factors – when selling your business. Whether you’re thinking of selling now or don’t want to sell until sometime in the future, having an advisor will help you comprehend what your company is worth. They’ll help you create the most realistic exit strategy for when you’re ready sell.
If you’re ready to understand the true value of your automotive business, contact us.