How Do Auto Dealership Brokerage Firms Facilitate Buying and Selling of Car Dealerships?
April 10, 2014
Are you looking to buy a car dealership or perhaps considering selling your car dealership? An auto dealership broker provides professional intermediary services to buyers and sellers of automobile dealerships in a number of crucial ways.
Identifying ideal car dealerships for sale
Auto dealership brokers identify and analyze prospective car dealership for sale. They carefully scrutinize each prospective acquisition based on defined parameters and criteria. This takes into account, but is not limited to, targeted geography, market size, brand or franchise, money available to invest, return on investment and of course the purchase or asking price.
Performance Brokerage Services utilizes a proprietary database of every dealership nationwide to maintain and update address and ownership information, as well as a list of car dealerships for sale. This allows buyers to locate their ideal car dealership and make an educated decision about their contemplated purchases.
Locating buyers for dealerships for sale
Performance Brokerage Services currently has hundreds of registered buyers looking to acquire a car dealership available for sale locally, regionally, or nationwide. As all buyers have different buying criteria, locating a buyer for a specific dealership for sale is like matchmaking. In this way, car dealership brokers bring buyers and sellers together on the same playing field to begin managing the negotiations.
Assisting with the negotiations
Car dealership brokers help buyers and sellers with negotiations on the financial and non-financial aspects of the process. They assist buyers and sellers with managing and resolving conflicts that may otherwise jeopardize the deal and/or the closing. Auto dealership brokers educate both parties as to what is or is not customary during the buy-sell process and bring reason, precedent, comparables and their expertise to the negotiations process. With the help of a car dealership broker, dealers can better structure their buy-sell agreements, which safeguards their interests in addition to the advice received from the attorneys.
Do I need the services of an auto dealership broker?
A car dealership broker acts as a liaison between the seller and buyer of a car dealership, rather than having the principals negotiate directly. They help buyers locate dealerships for sale and assist them with the buying process, and assist sellers by bringing multiple buyers to their doors, helping to establish the value of a dealership, and facilitate what can be a complicated process. If you are contemplating buying or selling a car dealership, you should surround yourself with a “sales team”. This team should consist of an accountant/CPA to supervise the financial aspect, an automotive attorney to assist with the drafting of the definitive agreements and for legal counsel, and a car dealership broker to help simplify the process and maximize the value.