The collision space is quite competitive. In order to succeed, capture the space and eventually lead it, you will need a set of carefully detailed plans. Most business owners aim for higher growth in the initial years with the intention to sell it later. Yet, strategizing for the sale of the business can be very overwhelming.
Since there is uncertainty in the market due to economic factors and tough competition, lack of knowledge and unclear roadmap can perturb not only the owner but the family and the business too. That is why many shop owners today are in desperate need of trusted help and guidance with the process of selling their shop.
Laura Gay, Owner/Consultant/Coach for Consolidation at Consolidation Coach, joins Matt DiFrancesco in the Your Business, Your Life podcast. They discuss the challenges that collision shop owners face today and how Laura’s experience allowed her to assist business owners in getting the maximum returns for their business and help them realize the next chapter in their lives.
Exit planning involves careful planning as every aspect of life is affected when a business owner parts ways with something they built from scratch. Understanding the ultimate vision is crucial, and answering questions like “What will I do if I no longer have a collision business”. You will need an expert who can help formulate a roadmap.
If you are planning an exit strategy and require assistance, then schedule a free 20-minute conversation with Matt DiFrancesco today.
About Our Guest
A first-generation body shop girl, Laura Gay, began her career at age 19, selling cars for a car dealership before transferring to a collision center. Her focus on process improvement and hard work allowed her to become a manager. She increased the sales from $1.5M to $3.5M within a year.
She opted to work for an insurance carrier when she decided she couldn’t keep up with her career in the collision center when she wanted to start a family. She continued to work for different insurance carriers for the following 15 years and broadened her network.
She acquired her first collision center when she was in her mid-30s. It was failing when she bought it, but she was able to turn it into a $6M business. She eventually sold the store and bought a second one, which increased her understanding of mergers and acquisitions.
She now utilizes her experience to guide collision shop owners who are in the process of selling their businesses. She helps them understand how much their business is worth, how to raise the value of their business when it is the best time to sell, as well as how to make informed decisions regarding their next steps.
Know Your Business’s Worth!
You only get one chance to sell your shop. You don’t get to go back and fix your mistakes. It is common that most shop owners end up leaving money on the table. The underlying thought is that “this might be the only offer I can get”. So, the misunderstanding that there is no wiggle room can result in huge losses.
Moreover, it is not just the business they own. They have real estate in their name. So, they can ask themselves questions like, “Does it make sense to lease it? Or does it make sense to sell it?”
So why do automotive business owners end up losing money when selling their businesses?
The basic reason is that sometimes they don’t have the right knowledge. They are so busy with business operations that it can become hard to keep up with what is going on in the market. Plus, the valuation, exiting, and selling process can be very complicated. Just think of it as doing your taxes.
The Remedy
It is hard to master all skills. The daily operations, management of stakeholders, and just dealing with the repair parts can consume a lot of time and energy. Adding the burden of knowing the right value and the correct roadmap in terms of real estate and personal life can be overwhelming.
So, to keep a check and hold on to all factors involved in your business, you can take assistance from experts. The right individual will value your family legacy correctly. They will come up with a number that is reflective of what you have put into the business, every piece of work, blood, sweat, and tears.
Family Vision
Since High Lift Financial has worked in the collision business, it was easy to identify a common pattern between all the body shops, repair, and paint shops. There are a lot of different businesses where the client has to sell because they may be burned out, have health issues, or have life events such as divorces or debts. These factors can put a lot of pressure on any individual.
Due to the above reasons, High Lift Financial engages in a process that helps to create a family vision. The business owners and all the key family members involved engage in a discussion where they answer questions like “what do they want? And how the business fits into their vision?”
In addition, at High Lift, we help clients start a self-buyout program. It is one of the most effective techniques to save the owners selling their business for pennies on the dollar.
Get In Touch With Laura Gay
If you require more information regarding exiting and selling your business, you can visit Laura’s website. You can also give her a call at 301-399-8675 or send an email. Since networking is key in the current business space, you can stay in touch with her via LinkedIn.
Contact High Lift Financial Today!
When planning any strategy, educate yourself and consider all the possibilities for you and your business. An effective way to cover all bases is to create a life plan and a business vision that will act as a roadmap. For more information regarding the exit strategy or transition plans, feel free to Schedule a free 20-minute conversation with Matt DiFrancesco today!
Know What Industry Specialists Have To Say!
High Lift Financial constantly engages with industry specialists who discuss current practices, trends, and strategies that can help grow a business. Here are some articles that you might be interested in reading:
- Assisting You with Elderly Care Decisions – With Guest Eileen Graham
- Why Might You Consider a Recruitment Firm? – With Stephanie and Duane Roberts
- The Biggest Cost to Employers – Healthcare Plans with Kimberly Volk
- Cross-Border Wealth Management with Jennifer Patterson
- Seeing the Greater Vision Through an Outside Perspective with Aric Johnson
Let’s Start Networking
- matt@highliftfin.com
- (814)201-5855
- LinkedIn: Matt DiFrancesco
- LinkedIn: High Lift Financial
- Facebook: High Lift Financial
Disclaimer
The information compiled and posted here solely represents the opinions and views of the guest. It might not be similar to the opinions and views of High Lift Financial. It is not a substitute for tax or legal advice or professional investment.
Always consult your financial advisor with any personal or business planning queries. DiFrancesco Financial Concierge, LLC. d/b/a High Lift Financial is a Registered Investment Advisor registered with the State of Pennsylvania and subject to the State of Pennsylvania’s regulatory oversight.