How to find out your dealership’s value

Description

Abstract: A business valuation is essential when selling a dealership, but it can be beneficial in other circumstances, such as when drafting a buy-sell agreement or preparing an estate plan. This article shows how valuators consider tangible and intangible assets, a wide range of valuation multiples and cap rates, and many other factors that can affect value. A sidebar explains that, for dealers who are selling their business, a valuator can prepare financial statements for buyer scrutiny by making various adjustments to earnings — a process called “normalizing.”