You may have noticed that there's a new feature in our Weekly Update today.
As a publication dedicated to the dealer network, we aspire to continually offer features and facilities that are helpful in all aspects of your business. That's our aim throughout the magazine, this Weekly Update, the Conference, our free Dealer Toolkits, Garden Trader, and all our social channels (YouTube, X, Facebook, LinkedIn).
So as part of this, today we're pleased to launch a Businesses For Sale section in this Update. For any dealers who are looking to sell their company, you can now promote what you are offering to the entire network.
If this is something you are interested in, please contact our fantastic Nikki in the office on Nikki@theadplain.com or 01491 837117 who will be able to help you with options.
Choosing to sell the business when there isn't an obvious, in-house succession route in place, will be a recourse that I'm sure many readers will eventually explore. If there doesn't happen to be an interested family-member or a trusted, qualified employee, into whose hands the dealership can naturally be passed when thoughts of retirement or a lifestyle change come around, looking for external purchase will be a viable alternative.
One presumes it must be better for the individual - and it's certainly beneficial to the industry as a whole - that a business is purchased rather than its doors permanently closed, with stock sold off piecemeal. It's something that Service Dealer owner Duncan Murray-Clarke has spoken about at several Conferences.
Duncan said, "Dealers deserve to get back something from all those years of hard work that they have put into the business. We at Service Dealer have a strong desire to not see any dealerships lost through closure. If succession isn't an option, hopefully buyers for a business can be found, keeping the network vibrant and substantial."
Reasons for choosing a sale
Obviously all independent businesses' circumstances are different, but speaking generally I would presume that this lack of an immediate candidate to take over would be a principal reason that a sale would be sought - but there will be others that might make this decision the most suitable.
The first that springs to mind is, if the right buyer can be found, the sale of the business could yield a substantial lump sum that can be invested to provide an income during retirement. This financial consideration might outweigh the appeal of a dealership continuing under a known successor. A lump sum injection into the bank could be used to pay off debts, invest in retirement funds, or pursue other interests. This immediate financial boost might be particularly appealing for dealers who do not want to depend on the future success of a business run by a successor.
Another thought could be that succession through the family has the potential to create conflicts and complications. This is a notion I've heard discussed by various speakers at the Service Dealer Conference over the years - a warning that if dealers are going down the family succession route, to be careful not to allow differing opinions on business strategy, leadership styles, or financial decisions to create tensions amongst their nearest and dearest. Therefore by choosing to sell the business to an external party, the retiring dealer can avoid these pitfalls, hopefully ensuring that family harmony is maintained whilst at the same time, securing the future of the business under new, unbiased ownership.
Dealers may also just want a clean break from the industry. Following years of hard work, some may just want to sell up and walk away - not being tied in some kind of advisory way to their successor. If a sale went smoothly, there's good chance this could lead more quickly to retirement than what I'm sure can be a lengthy and complex process of both legal matters and mentorship.
There will be other reasons too, that I'm sure our dealer readers will have thought about. Please feel free to share any in the comments below.
Finding a buyer
Key to all this however, is finding that suitable buyer. Of course, advertising in your favourite, trusted, highly-targeted industry publication is a fantastic place to start (!) - but doing a bit of reading around the subject, there are other considerations that business experts would recommend for a successful sale of a small business.
Some talk of employing a professional business broker who has specialist knowledge of the market to help oversee and negotiate a sale, whilst others recommend making proactive approaches to competitors, or businesses in similar sectors, who might be interested in purchasing your company. Other advice I've read includes ideas such as producing a detailed prospectus of your business, utilising your own social media networks or trying online business marketplaces. Also it's worth exploring if your business qualifies for the EMI scheme, where tax relief can be applied to a business sale.
In the end, if selling the business is the exit plan decided upon, for whichever reason, I suppose the best course of action would be a multi-faceted one. Promoting the sale in the right places and taking the best advice available would seem sensible places to start - hopefully resulting in the attraction of serious buyers, ensuring a smooth, and crucially, profitable transition - as moves are made to whatever the next stage might be.
