Thinking about Selling Your Midas Repair Business? Here’s What You Need to Know.
It’s never too early to start thinking about your exit strategy. Whether you’re planning to retire or simply ready to move on, you should start early.
By early, we mean as much as a couple of years in advance. Most owners have a date in mind, an age at which they know they’ll be ready to leave the company. Planning ahead will make the process easier and less stressful, both for you and for your staff. Waiting until you’re burned out and exhausted means you’ll be under pressure to take the first offer you get instead of waiting for the best offer.
Your first step should always be to have conversations with your family and financial advisors about your life after selling the business. Knowing how much it will take to fund your lifestyle or retirement is critical to knowing the right time to sell.
We recommend that you reach out to a broker with industry and franchise experience to help you understand the current value of your business. If that number doesn’t match the number you have in mind for your sale, you’ll have some work to do to get there. (Another reason to get started early.) Your broker can provide advice on how to reduce expenses, tighten or restructure your operations, and other ways to increase the value of your business for potential buyers. They’ll also provide insight into the process of selling and how long it might take.
Making sure your financial records are in order is one of the keys to a successful and quicker closing. If you need to hire help to get organized, it’s usually a good investment. The buyer’s diligence process can be long and complicated, and you’ll also be running your company, so being ready to respond to your broker, the buyer, and lenders quickly will make things easier for all parties involved.
One of the reasons to choose a broker with franchise experience is their connections within the industry. Our Franchise Clearly database has thousands of qualified and motivated buyers who are looking for a company like yours. In 2024, our sellers received an average of 4.3 offers for their business. When buyers are competing for your company, you’re going to be able to command a higher selling price and better terms. (In case you’re wondering, 2025 is starting out strong for sellers. We’ve closed on two franchises this year, one with six competitive offers and one with seven.)
Buyers choose franchises for many reasons: they offer a proven model for success, a well-established brand, and national marketing that provides strong walk-in traffic. Auto repair shops appeal to many buyers because almost everyone has owned a vehicle at one point or another in their lives and because many of those owners have experienced bad service. Owning a repair facility gives them a chance to make a difference in the industry’s reputation while making a great living.
Midas franchisees enjoy multiple revenue streams, including automotive services, tire installation and sales, and fleet services, putting them squarely at the center of a recession-resistant industry. They have access to merchandising and inventory support and a supply chain that helps owners keep costs down and maximize profitability. Midas waives franchise fees for military veterans and first responders, which makes them an attractive opportunity for second careers.
With the price of new cars predicted to rise substantially this year, auto repair shops are bound to see an increase in business, which makes your franchise even more appealing to potential buyers.
If you’re considering selling your business, visit us at booth #512. We’ll get back to you with a professional opinion of value.
