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Maximizing the Value of Your Tire and Auto Service Center (Part 2 of 2)

In Part 1 {hot link “Part 1}, we discussed the current climate for selling your business and industry trends.  In this second part of the series, we will discuss how to maximize your value through your financials, team, and curb appeal.

Financials

Having clean, easily accessible financials is critical when selling your business. Not only will good financials increase your credibility with buyers, but it will also help with financing by showing the SBA that your business is low-risk. Potential buyers will want to see the current financials prior to making an offer and this includes annual tax returns, and current year-to-date P&Ls and balance sheet. Investing in an industry specific point-of-sale system such as ASA TireMaster or others, integrated with accounting tools such as QuickBooks, will help you keep a closer eye on financial controls so that you can ensure the business is maximizing performance. Then when you are ready to sell, you’ll already have all of the documentation you will need to show buyers and the SBA that your company is a good investment without a lot of risk.

Your Team

Every business is built on, and depends on, a good team to function at its full potential. In addition to financials, buyers are keenly interested in an experienced and well-trained staff which will also help in transitioning as seamlessly as possible after the sale. We advise sellers to continue to invest in their staff up to the day of the sale. Once you are ready to sell, buyers will be impressed with a well-developed staff and the culture you have developed within the business.

Curb Appeal

The look and feel of an auto services business is important. Whether you own the real estate or leasing, investing the time and money into sprucing up your store prior to listing the business is a good idea and will provide a return on your investment. No buyer wants to purchase a business that requires cleaning and fixing up on day one. Make sure you freshen up your facility to attract clients now, if you do, a buyer will be impressed when you are ready to sell.

If you have been thinking of selling your business, we hope these tips can help you raise the value so that when the time is right, you will be able to get the highest sales price possible. The first move in selling a business is getting a valuation to see what the true value is, we can help.

Even if you aren’t quite ready yet, having a valuation done on your business will show you where improvements can be made which will allow you to make changes now. At Murphy Business Sales, we help hundreds of entrepreneurs like you plan for their future every day. For more information on how you can increase the value of your auto service business please give us a call or email us for more information. After all the hard work and long hours, you owe it to yourself to redeem your sweat equity and sell your business for the highest possible price.

Update: LOOKING FOR ACQUISITIONS OF WELL RUN TIRE & AUTO SERVICE CENTERS

We have a specific buyer looking for companies that meet this description. 

Specifics: 

• 1-5 store chains
• Revenue: $1.0-$1.5M/location ($2.0M/location is at the upper end) 
• EBITDA Valuation: 3-4 multiple 
• 6-8 bays
• 6,000 Square Feet Facility
• Retail: Ideally located on main road (high traffic counts) ideally within vicinity of Retail Box Stores
• Lease: 7-8% of sales (also interested in purchasing real estate if owner owns and is willing)

Geography: Across the United Sates with specific interest in Raleigh, North Carolina, Columbia, Charleston, and Greenville, South Carolina, Savanah Georgia, Orlando, Tampa Bay Florida (all of Florida in general), Richmond, Virginia, and Nashville, Tennessee.