Selling a car dealership isn’t just a financial transaction; it’s often an emotional journey, especially for family-run stores with decades of legacy. On today’s episode of Driving Solutions, Sheldon Sandler, founder of Bel Air Partners, discusses the deep personal challenges dealers face when deciding to sell, and the critical need to balance emotion with sound business judgment.
Sheldon Sandler has spent decades helping dealers navigate the complex world of buy-sell transactions. He notes that while valuation and market timing matter, it’s often the emotional stakes, like family legacy, loyalty to employees, and fear of the unknown, that weigh most heavily on a seller’s mind.
“It’s a life-changing decision to sell a dealership, and it’s such an important component of someone’s life,” Sandler said. He advises sellers to “keep your eye on the prize” and lean on professional advisors, such as brokers, attorneys, and accountants, to help manage the emotional turbulence of the process.
A key point Sandler emphasizes is the danger of keeping a deal too private or overly personal. Many dealers hesitate to go to market out of fear that employees will find out or because they’ve already promised the store to a friend or peer. But Sandler argues that these approaches can leave millions on the table.
In one case, Sandler notes that a friendly buyer lowballed an offer, only to later increase their bid after his team brought other interested parties into the conversation. “Ultimately… they wound up paying what they had to pay to buy the deal,” he said.
"If you want to take care of your people, cut them in on the deal. Give them a bonus.”
Concerns about the future of employees are also common, but Sandler warns that assurances from buyers often don’t hold. Trying to extract long-term job guarantees from buyers is rarely successful, he said, because new owners often implement their own systems, people, and culture within months.
For dealers emotionally ready to retire but hesitant to act, Sandler suggests starting with a professional valuation, without a commitment to sell. It’s important to understand the value of your operation. Bel Air frequently utilizes discreet marketing strategies that help sellers gauge their market worth without going fully public.
Lastly, Sandler underscored how long and complex these deals can be, often taking up to a year from initial discussions to close. “If a dealer is thinking about this and wants to be out in six months, they need to start the process now. It isn’t like how you list your home and you sell in 30 days.”
