What a dealership buyer looks at first
Which manufacturers you carry and whether each one must approve a new owner
Floor plan balances, terms and who guarantees them today
Parts and service revenue as a share of gross profit
How long used units and parts have been sitting in inventory
The technicians you employ and how long they have been with you
The Manufacturer Has a Say
Most dealer agreements let the manufacturer approve or reject a new owner. Some also limit where a buyer can operate or require certain facilities. A deal can stall if this comes up late.
Read your agreements before you list. A broker will want to know early which brands are involved and whether a buyer you like would also be acceptable to them.
Parts and Service Carry the Value
Whole goods sales swing with crop prices, cattle prices and interest rates. Parts and service are steadier. Buyers often look at how much of your fixed costs that steady side covers.
Show parts and service gross profit separately. A strong shop with good technicians can make a dealership attractive even in a slow year for tractors.
Inventory and the Floor Plan
New units are usually financed through a floor plan, and the balance gets paid off or moved to the buyer's lender at closing. Used units, attachments and parts are counted and valued separately.
Old inventory is a sore spot. Parts that haven't moved in years and used units that have sat for seasons will be marked down. Cleaning that up before a sale makes the count go faster and the price easier to defend.
Sales Tax on Equipment
Oklahoma has exemptions for certain farm sales, but the sale of a business itself is a separate question. Read our guide to sales tax on equipment in a business sale and have your CPA review how inventory and fixed assets are allocated.
Customers Who Have Bought From You for Decades
Farm and ranch customers are loyal to people. If the families around you buy from you because they know you, a buyer will worry about what happens when you leave.
A transition period where you introduce the new owner to your best customers helps. So does a sales staff that already handles most of those relationships.
Who Buys Dealerships
Buyers are often other dealer groups adding a store, or a manager who already knows the brand. Out of state groups also watch central Oklahoma. The selling guide covers how the process runs from start to finish.
Want to know where you stand? Use the valuation form or call (405) 555-0158.