Does it feel like every week, a new acquisition is being announced?
Over the past few years, the industry has seen a boom in acquisitions. Many dealers that have been around for a long time are looking to sell—and dealership conglomerates are happy to buy them. Anecdotally, we’ve probably done more acquisition work at IDS in the last three years than in the last 20 years. With the RV industry shifting towards consolidation, dealers looking to sell will need to make sure their business is in tip-top shape. Meanwhile, those not looking to sell will need to think strategically about how to differentiate themselves from “big box” dealerships by providing a more personal customer experience.
KNOW YOUR DEALERSHIP’S VALUE
If you’re looking to sell, you need to make your business look as attractive as possible. That means having all your ducks in a row and making sure you have the data to back up your pitch. It’s important to have a historical track of your data history—market share, sales history, and repair event cycle time. Having real data to reinforce your dealership’s value can be crucial for setting you apart from other potential sellers. An important part of preparing to sell is to clean up your dealership’s financials. This is where it’s worth it to leverage your DMS provider’s experienced services to clean up your financials. You have the data—they can make sure it’s ready to present.
COLLABORATE WITH YOUR DMS PROVIDER If you’re selling your business, you can save yourself a lot of grief by looping in your DMS provider and working with them early on. Many dealers don’t consider this until it’s down to the wire—which can lead to a scramble in an already stressful process. The best time to notify your DMS provider is after the letter of intent is signed. That way, you can work together to make the transition as painless as possible.
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