Buyers form an opinion of a dealership long before they read the financial statements. They walk the lot, look at the service drive, count bays and notice how staff greet customers. Preparing a store for sale is about making sure what they see supports the price you expect. A dealership buy sell advisor can guide the process, but much of the work is yours.
If you are comparing options, MD Johnson, Inc. presents itself as a buy-sell advisor for dealers focused only on the sell side. This guide covers three practical areas any seller can start on now: facilities, inventory and staff.
Facilities
Fix the visible small things
Burned-out lights, stained ceiling tiles, faded signage and cracked pavement do not https://mdjohnsoninc.com/sell-your-dealership/ change earnings, but they change impressions. Small repairs are inexpensive and remove easy talking points from a buyer's list.
Know your factory obligations
Many manufacturers have image or facility programs. A buyer will ask whether any are pending and what they cost. Gather the correspondence and be ready to answer. Hidden obligations found in diligence often lead to price reductions.
Organize property records
Surveys, environmental reports, permits and lease documents should be easy to find. If you own the real estate, decide whether you plan to sell it, lease it or keep it. MD Johnson says its subsidiary MDJ Realty handles the real estate part of the buy-sell at no additional cost.
Inventory
Clean up aged units
Aged new and used inventory raises questions about pricing and management. Work it down before a sale where you sensibly can.
Review parts
Obsolete parts are a common point of dispute. Return or write down what you can, and keep records of how parts are valued.
Agree the counting method
Inventory and parts are usually valued separately from blue sky. The LOI should state how they will be counted and priced at closing so there are no surprises on the final day.
Staff
Protect confidentiality
News of a sale spreads quickly. Uncertain employees may leave, and performance can dip right when buyers are watching. Keep the circle small. Decide with your advisor and attorney when and how to tell managers and staff.
Identify key people
Buyers want to know who runs sales, service, parts and the office, and whether they will stay. Consider retention arrangements for key managers, with legal guidance.
Document roles and pay plans
Clear, current pay plans and job descriptions make diligence smoother and show a well-run store.
Financial readiness
Facilities, inventory and staff support the story. The numbers carry it. Assemble at least three years of financial statements, document non-recurring expenses and owner adjustments, and look at rent against real estate value. MD Johnson lists these items as part of its valuation step and says it will not give an inflated number just to sign an engagement.
How a dealership buy sell advisor fits in
Preparation feeds the rest of the process: the Memorandum of Sale, outreach to qualified buyers, Letters of Intent, the Asset Purchase Agreement, due diligence, factory submission and closing. A dealership buy sell advisor can tell you which preparation items matter most to likely buyers for your brand and market, so you spend time and money where it counts.
Preparation checklist
- Small facility repairs done Factory facility obligations documented Property records organized and real estate plan decided Aged inventory and obsolete parts addressed Key managers identified, retention considered Three years of statements and add-back support ready
Useful resources
The National Automobile Dealers Association offers industry resources on dealership operations and workforce topics that can help with preparation. For tax and legal questions, rely on your CPA and attorney.
General information only, not legal, tax or financial advice.
A well-prepared store gives buyers fewer reasons to negotiate down and more reasons to compete.