- This topic is empty.
October 15, 2019 at 11:29 pm #999812LuxExtMember
- Total posts: 3
I operate an automotive mechanic business about 30-40 minutes from the cbd.
Currently we do everything from your basic maintenance right through to performance and race cars.
For a variety of reasons we are currently toying with the idea of selling off 49/51% (for example) of the business and dedicating my time to the niche part of the business (where my best skills are).
The idea is that the mechanical side of the business and the niche side work together in terms of referrals etc
Naturally there will be very strict terms and a lawyer will assist us with this but before I go around engaging with professionals I thought I would ask the brains trust for some ideas.
My queries are
– how would we value the business? Currently not drawing an income but making a slight profit.
This is only due to total lack of time to expand the business.
The reputation for our business is actually outstanding (not just saying that!!) so in reality we are selling a large customer base with an excellent reputation. There is unlimited growth in this business for sure. In fact – my wife even gets recognised and she doesn’t have anything to do with the business.
– where do we even look for a buyer???!!!!
Any advice, suggestions or experienced welcome!October 16, 2019 at 12:04 am #1221492bb1Participant
- Total posts: 4,472
It sounds like you are on a winner here, just wondering if you should really consider selling, and therefore loosing control over part of the business, and therefor possibly any negative impacts from a bad practitioner. Would it be better to possibly employ people who you can vet, and set standards for and therefore maintain 100% control and quality. Just a thoughtOctober 16, 2019 at 12:22 am #1221493MischelleMember
- Total posts: 805
I am with Bert on this one. I would employ someone to do the work rather than sell part of the business, that gives you total control.
But, if selling is what you really want to do, then I would be looking at your current contacts as a starting point, spread the word through your contacts that you are looking for a quality business partner. You do not want to sell to someone who can damage your reputation.
The problem I see (not an accountant ) for a service based business, it’s not sustaining an income, and I would assume a person buying in would want an income if they are working, OR if they put someone in to do the work. (if I was looking at the business as a buyer and doing my due diligence this is the biggest issue I would find).
Your accountant is the person you need to speak to first, don’t get lawyers involved yet, get the accountant to calculate the business valuation and that will help you decide if selling is a good option, it may come in less than what you thought and become more financially viable to employ someone.
All the best
MischelleOctober 16, 2019 at 1:20 am #1221494RunicConvenienceMember
- Total posts: 186
yeah, why are you selling at all. bring on a mechenic to work under you to take on the work your not “keen” on and focus on the niche side and overall business process.October 21, 2019 at 3:07 am #1221495businesstradeParticipant
- Total posts: 210
Speak to your accountant or perhaps a business broker. Those are good places to start if you are interested in selling your business. Alternatively, if you believe that the business can be successful, perhaps you can bring in a mechanic part time and go from there.
- You must be logged in to reply to this topic.