The 3 things I regret about selling my dealership
This article originally appeared in the May edition of Powersports Business, written by Max Materne, co-founder of Ownex.io and 2024 40 Under 40 winner.
My family and I founded and operated New Orleans’ BMW, Ducati, Triumph, and Vespa dealership for 17 years. Throughout that time, we grew up in it — both literally and figuratively. That dealership, which we called TTRNO, was part of the family; it effectively (or perhaps ineffectively) raised me. When the time came to sell it, and after the dust settled, there remained three significant things I think about daily. From these experiences that still keep me up at night, I hope you can learn and avoid the same pitfalls.
1. Letting cancer ruin our culture
For over a decade, I had what I call a “Sacred Bull” — a technician (though it could be any employee) who was my biggest producer but also my greatest source of anxiety. There were countless complaints, multiple employees quit, and half the handbook consisted of policies addressing his infractions. Another technician once told me, “You’ll never keep good techs if he stays,” to which I shrugged and replied, “But he bills almost twice as much as everyone else.” In that moment, I lost yet another great technician.
Sure, I had “warning” meetings with him and gave multiple “last chances,” but this only emboldened him, making him feel invincible. I spent sleepless nights worrying that losing him would mean losing my holdback money — though, truthfully, that was just an excuse. I convinced myself that I wouldn’t find talent capable of replacing him, but this turned out to be completely untrue.
When I eventually sold the dealership, he was still there. I assumed the new owners would recognize his value and maintain the status quo. However, within the first month, they fired him, recognizing that he was toxic. Surprisingly, the other techs immediately picked up the slack — not because they had to, but because the culture improved dramatically. The service team finally became a true team. They shared work, supported each other, and freely exchanged insights instead of hoarding information. They flourished — but only because the cancer had been removed.
My biggest regret was letting my team down by recognizing this issue and failing to act. Don’t make the same mistake: cut out the cancer. It might hurt at first, but your organization will heal and thrive afterward.
2. Not getting an appraisal sooner
When the time came to sell our dealership, we did our best, but as Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” We had never created an exit plan — not a five-year plan, not a one-year plan, not even a “How much could we sell for next week?” plan. We went in simply knowing we wanted out. Looking back, I wish we had obtained an appraisal five years earlier and used that information to craft a strategic exit.
If we had understood the dealership’s value before urgently needing to sell, we could have proactively improved the store and increased its value. Instead, we were just winging it. I naively assumed our “value” was evident through exceptional customer experiences and customer loyalty. But there was no concrete method to quantify these subjective factors — at least not until tools like Enthusiast Lifecycle Value (ELV) came along.
Had I known then what I know now, I would’ve consulted financial advisers like Morgan Stanley and brokers like Performance Brokerage sooner. This isn’t a promotional statement; it’s simply the truth. Recently, I’ve gained valuable insights from them about how dealerships are valued and how focusing on ELV significantly impacts a dealership’s overall worth. If I had to do it all over again, I’d confront that initial (and mildly insulting) valuation head-on. Then I’d collaborate with my team, address necessary improvements, and build a clear roadmap toward our desired value.
If you’re a dealer looking to understand your current valuation, build a roadmap to your desired future, align your team around this vision, and access the support needed to make it happen, reach out. I’d be happy to share the plan.
3. My timing
It would have been fantastic to experience the success many dealerships enjoyed during COVID, but I sold mine in October 2019. Despite the unfortunate timing, there were numerous silver linings. One major positive was selling my dealership to a friend and fellow 20 Club member. Watching him take over and achieve incredible growth and success was genuinely rewarding. It meant a lot to me knowing I didn’t set a friend up for failure, especially with a business my family and I had poured so much into.
Additionally, stepping away from the daily complexities of running a dealership allowed me to dedicate my full attention to supporting dealerships through Garage Composites. This new role brought immense joy and personal growth. During this time, many creative innovations emerged, including self-check-ins for service departments and resources like GarageCast. It also gave me space to explore customer lifecycles and their direct connection to dealership profitability.
This exploration sparked the creation of Ownex.io, designed to define dealership profitability through the lens of ownership experience. While my timing may not have aligned perfectly with the unexpected growth dealerships saw during COVID, it feels perfectly timed for shaping the future of dealership success.
Max Materne is the co-founder of Ownex.io, a platform that empowers dealers with tools that enhance customer experiences and drive growth.
I started my first dealership from a non-open point and the journey started from there. I first had to convince just one single OEM that my little town could support a dealership. 10 years later we had Honda, Yamaha, Kawasaki, Suzuki and KTM and we were doing over 2000 units a year. I sold my Dealerships in 2007, and I echo your last two regrets, I was lucky that none of my employes were ever toxic. Although in addition to your last two regrets I could also write a book on all of my regrets. My first regret came well before I walked out for the last time and actually happened when I was showing one of the kids of the new owner some of the advertising and marketing that we did. She looked up from her marketing 101 book and explained that according to her professor and the book she was reading everything I was doing was incorrect. My second regret came two weeks later as I was explaining to one of the sons how to price and market the 50 non-current ADVs we had just purchased, in order move them quickly be profitable and make room for the current inventory on the way. He left the room and said he just talked to his dad and that they were not going to take the rout, during my next few months of the management agreement I did not try to teach or show them a single thing not a single thing. My regret from those two experiences is that I did not try to return the money in escrow and terminate the contract.
As I said I could write a book but will not, looking back at the time of the sale I believe I sold my stores at the top of the market. With how our economy crashed starting 2008 I looked like a genius. Although like a fool I signed a seven year non-compete and this may be my biggest regret, and by the time that was over the fire in my belly had died, but I sure wish I could steer that ship again.