How do I sell a paint store?

Selling a paint store is different from selling most shops, because the main product often comes from one brand and the brand may have a say in who sells it. Contractors also buy on account and rely on colour records the store has kept for years. Preparing those pieces before you list will shorten the conversation with a buyer and reduce surprises late in the sale.

Talk to the brand about dealer approval

If the store sells a major brand under a dealer or supply agreement, read what it says about a change of owner. You may want to speak with your brand representative before you go to market. Ask what a buyer would need to show and how long approval usually takes. Buyers will ask the same question, and a ready answer keeps a serious offer from stalling.

Organize contractor accounts and colour records

Contractor accounts are the steady part of many paint stores. Gather a list of active accounts, the terms on each and any balances owing. Pull together colour formulas and customer match records so they can be handed over. Decide in advance what you are willing to share before a buyer signs a confidentiality agreement.

Prepare a clean stock count

Paint stock comes in several states. Cans may be sealed, tinted to a custom colour or returned. Separate them in your count, along with sundries and equipment such as tinting machines and shakers. A buyer will want to see how you counted and how you treated product close to the end of its shelf life.

Plan the handover

Identify which staff hold colour-matching skills and contractor relationships, and tell the buyer which people matter, and think about how you will introduce the new owner to your main accounts. Brokers who know the trade can help with the process, and our page on what to check before buying a paint store shows what a buyer will look at.