Selling your dealership: the checklist every owner forgets
By Jacob Berry
This article originally appeared in the December issue of Powersports Business
If you’ve ever thought about selling your dealership “someday,” here’s a wake-up call — someday comes faster than you think.
In a recent episode of the Dealership Fixit Podcast, I sat down with Courtney Bernhard from Performance Brokerage Services, one of the leading firms handling dealership buy-sell transactions across powersports, automotive, and marine sectors. Bernhard’s team has managed hundreds of transactions across Harley-Davidson and metric stores nationwide, and her insights cut right to the reality of what owners get wrong when it’s time to sell.
Whether you’re 24 months from retirement or just curious about what your store’s worth, this conversation delivers a reality check that every owner should hear.
The market has shifted and the balance has flipped
For the first time in decades, there are more sellers than buyers in the powersports space.
Bernhard explained that her firm is seeing an aging dealer body with fewer succession plans in place. Kids who once planned to take over are choosing different careers, and after years of heavy post-COVID workload and economic uncertainty, many owners are simply tired.
Meanwhile, automotive dealers, once eager to diversify into powersports, are now stepping back. “They’re used to one OEM, massive revenue, and predictable margins,” Bernhard said. “Powersports looks a lot different. Ten franchises under one roof, smaller markets, and a lot more complexity.”
That doesn’t mean there’s no demand; it just means buyers are more selective than ever.
The biggest deal killers aren’t what you think
You’d expect the biggest dealbreakers to be about profits or floorplan issues. But Bernhard says the “silent killers” are almost always organizational, not financial.
At the top of the list:
Messy financials. “I can tell within seconds if a dealer is in a 20 Group,” she said. “The clean ones always are.” Lenders lose confidence fast when P&Ls are disorganized or full of unverified add-backs.
Personal expenses on the books. Owners often run personal vehicles, boats, and even vacations through the business. Once it’s time to sell, those expenses can’t be justified to a bank.
No succession or estate plan. Bernhard has handled multiple cases where an owner passed unexpectedly, with no clear paperwork, frozen floorplans, and employees unable to access funds. “The family is grieving, the OEM is demanding documents, and the business can’t even order product,” she said.
Outdated parts and obsolescence. That back room you’ve been meaning to clean? It’s now a liability. “Every obsolete item gets counted and charged against you,” she said. “It’s costing you money twice, once when you bought it and again when you sell.”
If your dealership can’t function without you, it’s not ready to sell.
The 12–24-month prep plan
If you’re even thinking about selling in the next couple of years, Bernhard’s advice is clear: start now.
She recommends beginning with four key actions:
- Clarify your motivation. Why do you want to exit? Burnout, retirement, health, or lack of succession all create different timelines and strategies.
- Clean your balance sheet. Get organized, reconcile inventory, fix depreciation schedules, and stop running personal expenses through the store.
- Evaluate your advisory team. Many dealer CPAs and attorneys are retiring too. “Make sure your trusted partners are still going to be there to help you through the sale,” she said.
- Get your paperwork and estate plan in order. Update your wills, life insurance, and OEM notifications. Don’t wait for a crisis.
The human side of the sale
One of the biggest factors in any sale is the property itself. With high interest rates, buyers today are more likely to lease with the option to buy rather than take on full ownership right away. Sellers, in turn, are becoming more flexible, sometimes carrying notes or keeping ownership of the dirt to create cash flow.
Then there’s your team. “Your technicians and managers are part of your goodwill,” Bernhard said. “Buyers want to know who’s staying and who’s leaving.”
Retention bonuses for key employees can help ensure a smooth transition and protect the dealership’s value during the sale.
What your dealership is really worth
Every dealer wants to know one thing: what’s my store worth?
Bernhard’s answer: “It’s worth what a buyer is willing to pay and what you’re willing to sell for.”
There’s no magic formula. Multiples depend on brand, market, geography, financial health, reputation, and even how well your people can be replaced. “We’ve had buyers pay full price for a single franchise, buy the real estate, and hand back the rest,” she said. “Sometimes it’s all about one brand or one territory.”
Most dealers don’t fail; they just don’t prepare
Bernhard’s closing advice hit home for every owner: “Even if you think you’re years away, get your house in order now. Have your paperwork ready, know your numbers, and clean your shelves. Because the moment you need to sell, you’ll wish you started today.”
Whether you’re passing the torch, protecting your legacy, or just keeping your options open, preparation is the single best investment you can make.
Connect with Courtney Bernhard at www.performancebrokerageservices.com
