Top Questions Asked:

Selling a Powersport business is complex. We’ve been on the OEM approval side for over 40 buy/sells/new dealer start ups and understand the effort, work and complexity involved in a SUCCESSFUL dealership transaction. We’ve also seen great offers fall apart due to lack of understanding of the process and knowledge of how to get it finalized. Below are some of the top questions we get asked.

  • What’s my business worth?

  • What’s a fair multiple for my business in this industry?

  • What’s my goodwill worth?

  • Will my OEM approve this?  How long does that take?

  • Who can’t I sell to?

  • What will the OEM require of me and the new owner?

  • Is there value in my OEM Area of Responsibility Map?

  • I just bought new OEM-required store fixtures, are they good for the next owner?

  • Should I let my OEM know that I’m thinking about selling?

  • Can an OEM require the new owner to change buildings or locations?

  • Should I let my staff know?

  • Success plan or exit plan? Should I build up my financial for 3 year prior to listing?

  • How do I get my business ready for sale?

  • Where do you find a buyer?

  • What is the process?

  • How involved is the process?

  • Are their companies that specialize in consulting valuations and preparing my company for sale?

  • Who is buying in the area?

  • Who is selling in the area?

  • Can I do this on my own?

  • What should my rent factor be on my building?

  • Are my actual financials in line with my peers?

  • What are the financials of each of my profit centers?

  • What are the tax implications?

  • Share sale or Asset sale?  What’s the difference?

  • What’s my building worth?

  • Should I keep and lease my building?

  • Do I have to stay on and work?

  • How long does this take?

  • What did X dealer sell for in the past?

  • What costs do I have to sell from my vendors?

  • Should I consider a vendor take back sale?

  • What is the process to get finance approved?

  • Do I write down old inventory now?

  • What is the average price buyers are paying for old, dated dealer-owned inventory?

  • How do I reduce my +24mth old PGA, prior to selling?

  • What do other dealers who have gone through this process say they wish they had known at the start?

  • Does the OEM have a multi-ownership store policy (minimum standards)? How does it work?

Need these questions answered?
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An image of Chris Nicholson, founder of Action Powersport Consultants, next to an ATV in a desert, with hills in the background.