How do I prepare a boat dealership for sale?

Buyers of a boat dealership look closely at stock, service income and the manufacturer relationship, so those are the places to put your effort. Start well ahead of the season you hope to sell in. A calm, documented dealership gives buyers less to worry about, and it gives you more control over the process and the timing.

Time it around the season

A buyer wants to see the dealership at work, so many owners go to market just before or early in the selling season, when the yard is full of activity and the numbers are fresh. Closing in the quiet months can suit a buyer who needs time to build inventory. Talk to your accountant and your broker about timing before you decide.

Clean up stock and records

Deal with aged units, settle or return consigned boats, and make sure hull identification and engine serial numbers match your list. Reconcile the floor plan statements with the inventory so a buyer can see what is owed on what. Have clean, current financial statements ready, and keep personal costs out of the business accounts.

Show the steady income

Buyers value income that repeats. Pull together records of service, parts, storage and winterization, with the number of returning customers and the work booked ahead. Write down how the shop runs, who the key staff are and what they do. If you want to keep the land, think through the real estate question with your advisers.

Ask the manufacturer early

Read each manufacturer agreement to see whether consent is needed for a new owner, and what the manufacturer will want to see from a buyer. Raise it with your representative before you list, so the process is known. Your lawyer can tell you how the agreement and any lease deal with a change of owner.