Mergers & Acquisitions
A New Way In Dealership Acquisitions:
Have you bought or sold a dealership lately?…
Or do you know of someone who did?…
Buying or selling a car dealership is a complicated and a cumbersome process. There are many complex variables involved, and all of it requires specific expertise. And yet most of you deal with conventional business brokers who specifically buy and sell dealerships…. Typically, a broker will sign an exclusive contract with you to represent you as the seller and then shop your dealership openly as a listing to everyone in the world.
Are you sensitive to confidentiality when selling your dealership?
Concerned about disrupting your business and losing employees?…
Keep in mind that finding potential buyers for your dealership is just the beginning…
Consummating a sale however is a different story…
Typically, brokers only close about 50% of their sales since there are many contingencies before it can actually transact, such as factory approvals, finance resources, regulatory approvals, and of course a lot more if the real estate is involved. A broker’s job is usually finished right after a letter of intent is signed by the seller and the buyer. Next thing for them to do is just sit back and hope that it all goes through so that they end up with a 5% sales commission just to bring a seller and a buyer together…
A Different Approach:
At Convergent Alliance Advisors we have a different approach to dealership sale transactions that takes the pain away and saves you considerable amount of time and money and we close over 90% of our transactions. In a nutshell here is what we do differently:
- Whether we represent the seller or just shopping for a buyer the added value benefit is on the side of our client,
- If you are the seller, we maximize your business and asset value by simply working on your balance sheet and make sure that it reflects maximum value,
- If you are the buyer, we make sure that the asking price is justified by a thorough due diligence that we perform with over 40 years of retail expertise in the industry.
- When representing the seller, our approach to finding buyers is completely sensitive and confidential and not advertised or listed.
- We draft the letter of intend and in most cases the first draft of the purchase agreement and save you substantial legal fees.
- We process all of your factory applications and monitor the approval process until the end.
- We explore and process all of your floor plan and working capital requirements to meet required manufacturer standards.
- We work directly with the escrow company to expedite the process and personally get involved with closing and transfer of inventories and other assets.
- We expedite all of the other related regulatory licenses and applications in order to complete the transfer of the dealership.
- If you are the buyer, we ultimately help you prepare an elaborate forecast and a detailed business plan to ensure your success from the starting gate.
- Ultimately, compared to conventional business brokers, for the sellers, we only charge 3% based on assets and goodwill value and only 2% on the entire transaction if the real estate is included. If you are the buyer, we simply charge a negotiated advisory fee to connect you with the right opportunity and make sure of a successful transaction to complete.
- Last but not least, we are not a brokerage firm; rather an advisory firm with over 40 years of automotive retail and wholesale experiences.
Give us a call or write to us for a completely confidential valuation consultation absolutely free of charge. You will be pleasantly surprised what we can deliver in value…