Focus Advisors Automotive

Is now a good time to sell?

Two years ago, we saw the industry achieve peak values. We doubt we will see those values again. This means that for single shops, finding a buyer today is growing more difficult. For fast growing MSOs, there is still time to consider an ideal time to sell, but it depends on whether your business has been recently performing at a high level. If not, it might make sense to show that before going to market.

What is my business worth?

No two businesses are the same. The key factors affecting value for buyers today are: Revenue and EBITDA, location size and capacity, expansion opportunity, DRP diversification, OEM certifications, experienced management remaining with the business and the quality and number of trained technicians. Generally, buyers make offers on a multiple of reconstructed EBITDA or a percentage of revenues. Larger MSOs sell for larger multiples than smaller MSOs and single shops.

How long does a sale take?

This depends on the preparation of you, the seller, and the workload of the buyer. A typical transaction takes 2-3 months to get to market and another 4-8 months to close. If you have a well-prepared, motivated, and responsive team on your side, the timetable can be accelerated. Time to market can be as short as 4-6 weeks and a transaction closed in 3-6 months.

How do you maintain confidentiality?

We respect the need for and maintain complete confidentiality throughout our process. We begin our relationship with a Non-Disclosure Agreement (NDA). When we go to market, we do so with a blind document that shields the identity of the seller until prospective buyers also sign NDAs. We have a long history with all the large buyers with whom we maintain blanket NDAs. We maintain confidentiality throughout the entire due diligence and closing process, including scheduling site visits and inspections after hours.

What are your fees?

We are paid a percentage if and when you successfully sell your business or raise capital. We also charge a nominal monthly retainer while we prepare your business and collateral to go to market. We are always happy to share our thoughts about your business and market for no cost or obligation, including taking a deeper look at your financial and market positions.

What's the cost of selling without an advisor?

A peer-reviewed study of more than 3,000 private company sales found that sellers with professional representation received 6–25% higher valuations than those who went it alone. In collision repair, that gap is even more pronounced. The buyer side has consolidated into a small number of private-equity-backed platforms — each with in-house M&A, integration, legal, and real estate teams who close dozens of deals a year. Most sellers, by contrast, are family-owned operators going through the first and only sale of their business lives. The asymmetry shows up in valuation, deal terms, real estate