Many of our members are looking to sell their service stations in the near future, but they’re not sure where to start.
Here at ServoPro, we compiled some of the best tips that can help prepare your service station for sale. Even if you’re not looking at selling in the near future it’s always good to have an exit strategy in place.
Here’s what you can do to make sure your service station is ready to be sold.
1. Get a business valuation.
You’ve got to know what your service station is worth, and and you should always get a valuation from an objective source. A professional valuation can tell you what buyers are likely to offer, and what you can expect to net from the sale. It can also tell you the strengths and weaknesses of your business, along with your market position and financial situation.
2. Get your books in order.
Selling your service station will most likely require three years’ worth of financial information, which means that your books should be updated and organised. The more formal your statements are, the better impression you’ll make on potential buyers.
3. Understand your profitability.
If you claim any nonoperational expenses at your service station, make sure that you have the supporting documents in place for those expenses. There might also be infrequent expenses that your service station has experienced over the past three years that should be excluded from cash flow reporting.
4. Talk to your financial advisor.
Your financial advisor can help you plan your financial future, and they can also help you understand your personal and corporate tax standing.
5. Think about first impressions.
When a buyer visits your service station for the first time, you want to put your best foot forward and make a good first impression. They are most likely looking at other service stations besides yours, so you want to stick out in a positive way.
6. Make sure your legal paperwork is organised.
Have current incorporation papers, permits, licensing agreements, leases, and customer and vendor contracts readily available and in order. If you haven’t recently audited your site, contact us to use our self audit app, built specifically for petrol stations.
7. Consider the shift in management.
If you are vital to your service station, who can your buyer turn to if they run into problems after you sell? Put a succession plan in place before you place your business for sale. Some buyers are looking for sites that are already under management.
8. Understand your reason for selling.
Buyers are often curious about why a seller is putting their business on the market – if your service station is so great, why are you selling it? You should be prepared to answer questions like this.
9. Don’t focus too much on selling.
The last thing you want to do is let the performance of your service station decline because you’re too focused on selling, as this could make buyers lower their offers. Dedicate equal amounts of effort to the sale of your business and maintaining its success.
If you need help with getting your service station ready for sale or if you are ready to sell then contact us and we can help you get the best price for your business.