So, you want to sell your buy here pay here used car dealership?
Steve Taylor, Director of Acquisitions at America’s Car-Mart, sold his used car business to America’s Car-Mart in 2020. Now he’s leading our acquisitions department to help Car-Mart grow. “Selling your buy here pay here business is one of the biggest decisions you will make in your life. After all, you’ve worked hard to build a successful business,” he says. “It’s a major part of your life and who you are.”
“And selling – and deciding to sell – can be emotional,” he adds. “Sometimes you don’t know what to do. And when you don’t know what to do, you keep doing the same thing. You just get up, go to work, sell five cars, and you do it again and again. Before you know it, you’re ten years down the road.”
Selling will take careful planning to ensure you make the right decisions for you and your business. Recently, Steve shared his thoughts about things to consider when selling your buy here pay here used car dealership. Steve suggests asking yourself these eight questions.
1. What’s my timeline?
Think about how long you want to be in the buy here pay here used car business. Selling a buy here pay here business doesn’t just happen overnight. It’s not a short-term transaction, as you’ll need to consider your loan portfolio, including its size and contract age, and this process may take some time.
2. Who needs to be involved in the conversation to help you decide to exit the business?
If your family has helped you build (and invest in) your business, it’s a family project. So, they’ll need time to reflect on the best decision for the company, family, and personally. And you will want someone to speak the truth about the business.
You should also consider other integral people who are a part of your business. Consider who will be impacted if you sell your dealership, and be sure all parties are a part of your decision-making.
3. Do I need to do something immediately, or do I have time?
You’ll have a different answer depending on whether or not you need to do something quickly or take the necessary time to exit the business. Think about the factors dictating your timeline.
4. Do I care if this business exists without me going forward?
You’ve worked hard to build a successful company and create a legacy, so you’ll want to ensure your company’s values and vision will continue. Be prepared to share your story and your company’s story – what you’ve created and what it means to your employees, customers, and community.
5. What will happen to my employees if I sell my business?
You’ve also worked hard to hire talented employees with the skills, knowledge, and expertise. You’re a family. So, you’ll want to ensure a positive future for them.
6. Do I need the highest value proposition or the fastest, cleanest exit?
You’ll have to consider how quickly you want or need to exit the business. You may leave money on the table with a quick exit. Or you can take a longer strategy to maximize your loan portfolio.
7. What are my obligations to lenders?
Know the status of your loan portfolio and how that will affect your options and decision-making.
8. What would happen if something happened to me personally and I was unable to run the operation?
Consider those people in your lives who will need to take over should something happen to you. Know the answers to these questions – Are they equipped to run your business? Or would your business have to be liquidated? An exit strategy is essential so your heirs can successfully run or exit the business. You want to ensure your plan will continue the goodwill you’ve built over the years.
Selling requires deliberate thinking and careful planning, So, knowing the answers to these questions will go a long way in helping you develop your exit strategy.
Considering selling your buy here pay here used car dealership? If so, Steve would love to hear from you. Email Steve at [email protected]
Learn more about America’s Car-Mart’s acquisition strategy – what Car-Mart is looking for in dealerships and the stories of those dealerships who have sold their companies to Car-Mart.
