[dropcaps size=’5px’]D[/dropcaps]ealers have limited options when they want to obtain an objective opinion as to the value of their dealership. Unless a dealer wants to make an educated guess as to the potential value of the dealership, the only viable option in obtaining a documented valuation opinion is to either engage a CPA or a brokerage firm to conduct a formal valuation.
Depending on what the valuation is being used for, engaging a CPA firm to conduct a formal valuation does not make sense since it may be cost and time prohibitive. A dealer should not have to pay over $10,000 and wait a month to get a formal sense of what their dealership is worth.
The other alternative is to hire a broker to conduct the valuation, while the cost and timing of this option is more attractive than that of a CPA, the downside is the opinion is coming from a source than can be viewed as non-objective or bias. While brokers are well equipped and can provide a substantive valuation, the dealer obtaining the valuation will always have the doubt whether the valuation was conducted in an objective manner, and not in a manner to try to motivate the dealer to sell their dealership.
The alternative that Axiom Advisors provides is that we are neither a CPA or a brokerage firm, so we can provide a timely, cost effective, and truly objective opinion of a dealership’s value. Since we specialize in the retail automotive industry and in mergers and acquisitions, as a dealer you are obtaining an accurate and unbiased representation of your dealership’s value.