What is a business broker?

This is a company or individual that assists a business owner in selling their business. The process may also work in reverse, where a business broker helps locate a business for company or individual to buy.

What skills does a business broker typically have?

A business broker has experience in business and financial analysis, salesmanship, and possibly background in a specialty, such as GM Consultants has in automotive salvage and related industries.

What is a valuation?

This is the value assessed to a company after analysis. It may become the asking price or at least provides guidance as to the asking price.

What is an asset sale?

The sales price of some companies is usually based on profit times a multiple, or the asset value. It’s one or the other. The assets would have to be valued carefully, and don’t expect a buyer to want exactly the assets that you have, but this is part of the consultation that GM Consultants provides.

What is a multiple?

A company is said to sell for “3 or 4 times earnings”, for example. This means that if their adjusted earnings are $100,000, then the selling price might be $300,000 or $400,000.

What are adjusted earnings?

This is the profit made by a company, with credit for expenses that you’ve incurred but would not need to be incurred by the buyer. Buyers are typically consistent as to what expense they will accept as being added back to the net income reported on your taxes. This is an important component of the work that GM Consultants does for their clients, whether buying or selling a company.

How can I determine if GM Consultants can help me?

In a simple conversation in which you state your objectives is a great start. From here, we can see if we have common ground.

What sort of fees does GM Consultants charge?

There are consulting services discussed in the Services section of this site. If our job is to sell your company, or find company for you to buy, we’ll negotiate a success fee percentage (commission) and a modest retainer so that you have some “skin in the game”, which will be credited to you upon the sale or purchase.

Why would someone sell a good company?

Retirement, health, personal issues, moving on, or just capitalizing on their good works are some of the main reasons. Sellers can be selling out of a position of strength or weakness.

What is the state of the auto salvage industry with regard to yard values?

There has been tremendous consolidation by a few national chains. And many regional powers have grown their base with two or more yards. Most of these yards are strong and tend to make it challenging to operate in their geographical areas. This puts pressure on all operators to refine their businesses so that they may survive, flourish, and eventually sell. It is a buyer’s market at this point. There are many good values out there.

Are companies making money in auto salvage?

There are hundreds of operators who do very well in this industry. That is in addition to the chains and regional powers. The profitable ones tend to have a good physical layout in a populated region, with modern management systems and strong leadership.

What options do I have if I want to sell a yard that is no longer performing?

There are options that we can discuss such as an asset sale.