Common questions

You have questions and we have answers. Take a look below at the most common questions we answer for those considering a sale of their collision repair or automotive retail facilities.

What are the benefits of hiring Zoran Advisors?

  • We take the time to educate you on how buyers think

  • The process is very time consuming. We run it so you can continue to focus on running the business to maintain its performance and value

  • We solicit interest from buyers

  • We advocate on your behalf as buyers question asset and operational qualities to reduce the purchase price

  • We negotiate and structure the deal to meet your needs. We identify and avoid traps like unrealistic earnouts and lease agreement concessions

Is now a good time to sell?

Five years ago, we saw the industry reach peak values. We do not anticipate we will see those values again. Finding a buyer today for single shop owners is more challenging. A discreet no obligation conversation can help us both determine if the right time is now.

What is your process?

After we agree to work together, we will execute a non-disclosure/confidentiality agreement. Next, we will finalize the Representation Agreement, followed by the business profile packet.

Upon review of this information, we will pull together a business summary package for perspective buyers. We take your business confidently to market providing details to serious bidders with whom we have signed confidentiality agreements with. We only seek the best buyers for your business.

Once we have identified and engaged with the buyer, we negotiate the right deal for you and your family, followed by a Letter of Intent (LOI). The details of the LOI are vitally important. The purchase price is just one determinate of value and is greatly influenced by the other details in the offer. Once you agree and accept the offer, we ensure that the Asset Purchase Agreement (APA) matches the offer.  The lease for your building is also a significant piece of the transaction and we work with you to ensure you receive the right deal.

The buyer will conduct due diligence throughout the entire process, and we are here to manage that process for you.  

What is my business worth?

No two businesses are alike. The key factors affecting value for buyers today are; revenue, EBITDA, location, size of building and property, expansion possibilities, DRP diversification, OEM certifications, remaining management teams, quality and number of technicians remaining with the business. This means purchase prices vary depending on these key factors. Over time, as the consolidators increase their brownfield and greenfields their valuations on the independent shop and small MSO is shrinking.  

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). This is a written commitment that your financial information, your plans and even the fact that you are considering selling is never revealed to anyone outside our organization until you approve. When we go to market, we do so with a “blind” document that describes the business in a way that shields the identity of the seller until prospective buyers also sign NDAs.

Additionally, 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. Only the key people you designate are brought into the process when they are required. By the time final due diligence and insurance relationships are being confirmed, most deal terms are already locked in.

How long does a sale take?

This depends on the preparation of you, the seller, and the workload of the buyer. Today some of the largest buyers have many transactions in their pipelines and delays are common. For smaller buyers, the process moves more quickly.

What are your fees?

We are paid a percentage when you successfully sell your business. We also charge a nominal upfront retainer as we prepare your business to go to market.

We are always happy to share our thoughts about your business and market and where the industry is headed for no cost or obligation, including taking a deeper look at your financial and market positions. Contact us and we’ll setup some time to have a conversation.

What about my real estate?

Generally, the larger MSO’s do not want to own real estate. They only want to purchase your business and its operating assets.