Welcome to today’s podcast episode, where we focus on a topic that is of great significance to entrepreneurs in the automotive industry- “Selling Your Automotive Business.” Our esteemed guest today is Peter Fennell, a seasoned business broker from United Business Brokers, who has an exceptional track record in successfully selling automotive businesses. Peter brings his wealth of knowledge and expertise to the table, and in this episode, he teams up with Zoran Sarabaca to provide an in-depth discussion on selling an automotive business.
Throughout the podcast, Peter and Zoran explore various aspects related to selling an automotive business. They discuss the current market trends for such businesses, what potential buyers are seeking, how to accurately determine the value of your business and the prevailing industry conditions. Their insights and analyses provide valuable guidance and advice to entrepreneurs looking to sell their automotive businesses.
If you own an automotive business, such as a mechanic workshop or a body repair shop, this episode is an absolute must-listen. Peter’s extensive knowledge and expertise will provide you with valuable information on how to prepare your business for sale, attract the right buyers, and maximize its value. So, buckle up and get ready to gain some valuable insights on selling your automotive business.
Key Talking Points of the Episode:
[01:19] Getting to know Peter Fennell’s history
[07:26] Profit factors in the automotive industry
[10:22] How is the industry dealing with the shortage of skilled labor
[11:39] Why didn’t Peter consider working as a mechanic when he left his job?
[13:55] what would a very good mechanic shop make in terms of profits?
[14:49] Do electric cars need more maintenance?
[16:49] How to get mechanical help as a mechanical shop owner
[19:38] When selling a business, does Peter introduce the client to contracts and other mechanics?
[20:26] Who are the buyers and sellers in the industry?
[21:37] Is the difference in supply and demand of the businesses in different geographical regions?
[24:22] Is the motor industry using videos and photos to document processes?
[25:31] What do buyers in the automotive industry look for?
[26:45] Value drivers for mechanical shops
[29:22] Performance based markets
[31:14] What makes a business desirable from a buyer’s side of view?
[33:34] Value drivers in this type of business in automotive businesses
[35:25] How to gauge how much a mechanic shop has
[38:22] What was happening during covid lockdown?
[39:25] What’s happening post Covid
[41:05] How does Peter help ensure clients get transferred to the buyer during a sale?
[44:31] Challenges when selling mechanic businesses
[49:23] What should buyers look for when buying a business?
[51:19] How some businesses operate with the wrong deal
[54:21] How does the size of a company affect its demand?
[01:02:52] How does stock affect the value of a business?
[01:08:43] Profit taxing
[01:09:31] Selling panel beating shops
Magical Quotes from the Episode:
“When I got an expensive car, I’m not getting any better service. I’m just paying more for it.”
“Trust is a big part of automotive.’
“The real money is, is in diagnostics.”
“Most sellers have built their businesses from scratch. They don’t want to see that business now pass to someone else and fail they want to see it produce and go further.”
“If you want to have a good long-term business, because you’re buying a good long term business, treat the customers with respect.”
“If you over price your business, you’re shooting yourself in the foot.”
“Every single business has got to be assessed individually, because the way different businesses are run is an important part of how we value a business.”