How do I sell my
Car Dealerships
business?
Business Advisors of America understands dealership deals at the manufacturer approval level. We help you identify and qualify the right buyer candidates, navigate the factory approval process, and structure the deal so your floor plan and real estate are handled cleanly at close.
Why sell your
Car Dealerships
business?
Franchise auto dealerships remain some of the most sought after businesses in the country, and buyer demand is strong today. Large dealer groups and well capitalized investors are competing hard to add rooftops, and blue sky values for desirable franchises have stayed elevated because acquirers want scale and prime locations. That competition rewards owners who bring a clean store with solid fixed operations and a healthy manufacturer relationship to market. The retail model is also shifting as manufacturers push new technology, EV readiness, and facility image programs that require meaningful reinvestment. Owners who would rather not fund that next round can hand it to a group eager to modernize. A generation of dealer principals is reaching retirement age, so more stores will change hands over the coming years, and selling before that wave protects your leverage. Fixed operations and used vehicle margins continue to support attractive earnings for well managed dealerships. If retirement, easing back, or taking blue sky value off the table while acquirers are paying up is on your mind, the timing clearly favors a sale now.
frequently asked questions
We’re here to answer your questions.
Here's where we answer the most common questions about
Car Dealerships
What is Blue Sky and how is it calculated?
Blue Sky is the premium a buyer pays for the right to operate your franchise. It is calculated as a multiple of adjusted pre-tax profit after net assets are accounted for. The multiple varies by brand, market, and current conditions.
Can I sell to my General Manager?
You can, but manufacturers require the incoming Dealer Principal to have significant liquid capital, often in the millions. If your GM does not have it they may need an outside financial partner to back the transaction.
Will the manufacturer block the sale?
Manufacturers have a Right of First Refusal. They can block a buyer but typically must purchase at the same price if they do. We ensure your buyer is a strong candidate to avoid this scenario.
What happens to my floor plan line of credit?
The buyer brings their own floor plan lender who pays off your existing line at closing. It is a seamless transfer of inventory financing that happens at the closing table.
How long does it take to sell a car dealership?
Dealership sales typically take 6 to 12 months due to manufacturer approval requirements and the complexity of transferring franchise rights, real estate, and floor plan financing simultaneously.
Hear from Our Clients
