Medium Sized franchised Dealership
Following a full site audit using Automotive Asset’s experience, knowledge & contacts, a list of prospective trade buyers wasidentified and presented to the client, who was seeking a good cultural fit, as well as an acceptable price.
Once the target contact list was agreed, identified buyers were contacted on a confidential basis to establish their current appetite for a potential sale. Following initial discussions, two regional motor groups expressed an interest enabling the creation of a full confidentiality agreement identifying the prospective vendor and supporting information memorandum. This resulted in three written offers:
- Continuing Use: 127% & 130% of the 2011 Property Valuation
- Alternative Use: 150% with an uplift to 200% on achievement of Planning Permission of the 2011 Property Valuation.
Although the sale was made to one of the continuing use prospects, the alternative use offer was key in levering the price paid for the property, providing significant buyer confidence to the interested parties.
The final sale was successfully transacted at a price in excess of £350,000 above the Auditors’ Valuation of the business in March 2013.
The vendor continued to operate the business, improving on the previous year’s performance during the six months that the project took to complete from the initial meeting to the completion.
Confidentiality was maintained throughout the process and the staff were made aware of the sale at a meeting, 10 days before completion, held jointly with the vendor and purchaser.
Throughout the process, Automotive Assets was on hand to provide continuing support to the business owner liaising and negotiating effectively with the manufacturer; vital with all manufacturers having the right of veto of a sale since July 2013. The process was also supported with attendance at solicitors meetings.
The sale of a business, especially a long established business, which the owner has often personally managed on a day-to-day basis, could be a traumatic and emotional experience. Automotive Assets understands this and works to provide total sales process support, enabling the business owner to continue running their business profitably.
The sale of a business can include financial and/or cultural needs. Automotive Assets can enhance the sale value of a business for continuing, or alternative use. Whichever option is chosen, sellers can be assured that, in Automotive Assets, they are working with people with real industry knowledge, insight and empathy – after all we created Automotive Assets to deliver the type of seller support we sought when we ran dealerships.