Hello Everyone,
I own and operate a boat dealership that I started 30 months ago. I graduated from outboard mechanic school at 42, worked at a dealership for 7 months before it went out of business due to the bad economy. I made a decision to purchase the empty property and start my own boat business. In doing so, I was convinced by my old boss, the GM, that he knew what he was doing. When I opened my dealership, I decided to make him my GM. Shortly after, he was caught stealing and was fired. Now, its just me.
During the process of buying the real estate, I discovered i had identity theft. It was done by a very close family member and It would kill my mother if I were to have them prosecuted. SO, unfortunately, I did not prosecute. My score is up from a 375 to a 670 presently.
I started my dealership with about 100K and now, thanks to a couple of great years, I have grown to all most 2,000,000 in assets. As of now, I am the GM and only salesman. I absolutely hate talking to people and have considered selling or even just closing the doors because of my social discomforts with talking to my customers.
.....
Two years ago, I met a retired customer that worked as a GM for a new auto group. He worked for the same group of dealerships for the past 33 years. He retired at 55 from the GM position one of the largest auto group in the state, and is now 57. He has been married 36 years to the same woman and his wife is currently the CFO of over 30 new car dealerships. Loads of experience on both he and his wife's end. Also, they both have 825+ credit scores.
Here is my question....
My competitor has come to me and wants to sell his 35 year old business for asset value. He is in his 70's and wants to retire. He is asking 800k for the real estate and business, but is willing to work out some reasonable payment terms. The two dealership together would create at net value of close to 5 million. Here is the problem, I would need a line of credit of about 2 million to qualify for the new boat franchises. What percentage of my business should I propose to my new GM to partner on this venture? I need to give him enough to make him stay but I don't want to give him the farm either.
His expertise and experience are exceptional. I feel he is as solid as a rock can possibly can be.
Thank you,
Rookie Driver
I own and operate a boat dealership that I started 30 months ago. I graduated from outboard mechanic school at 42, worked at a dealership for 7 months before it went out of business due to the bad economy. I made a decision to purchase the empty property and start my own boat business. In doing so, I was convinced by my old boss, the GM, that he knew what he was doing. When I opened my dealership, I decided to make him my GM. Shortly after, he was caught stealing and was fired. Now, its just me.
During the process of buying the real estate, I discovered i had identity theft. It was done by a very close family member and It would kill my mother if I were to have them prosecuted. SO, unfortunately, I did not prosecute. My score is up from a 375 to a 670 presently.
I started my dealership with about 100K and now, thanks to a couple of great years, I have grown to all most 2,000,000 in assets. As of now, I am the GM and only salesman. I absolutely hate talking to people and have considered selling or even just closing the doors because of my social discomforts with talking to my customers.
.....
Two years ago, I met a retired customer that worked as a GM for a new auto group. He worked for the same group of dealerships for the past 33 years. He retired at 55 from the GM position one of the largest auto group in the state, and is now 57. He has been married 36 years to the same woman and his wife is currently the CFO of over 30 new car dealerships. Loads of experience on both he and his wife's end. Also, they both have 825+ credit scores.
Here is my question....
My competitor has come to me and wants to sell his 35 year old business for asset value. He is in his 70's and wants to retire. He is asking 800k for the real estate and business, but is willing to work out some reasonable payment terms. The two dealership together would create at net value of close to 5 million. Here is the problem, I would need a line of credit of about 2 million to qualify for the new boat franchises. What percentage of my business should I propose to my new GM to partner on this venture? I need to give him enough to make him stay but I don't want to give him the farm either.
His expertise and experience are exceptional. I feel he is as solid as a rock can possibly can be.
Thank you,
Rookie Driver
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