It can be tempting to rely on a simple rule of thumb when determining the value of your truck dealership. If life was that simple, you would not need to read the rest of this article, but keep reading. There are many reasons why a truck dealership can be worth more or less than a standard rule of thumb might imply, and many reasons why a particular business interest in a truck dealership can be worth more or less than the pro rata value implied by that rule of thumb. This article provides useful information as to how truck dealers are valued and what impact that might have on their owners.
At this point, you may be tempted to respond “I just want to know what time it is, not how the watch works.” But this is dangerous, because a lack of knowledge can cost you dearly. Giving some thought to why your business is worth what it is worth can be of great value. Understanding how truck dealers are valued helps owners understand the value of what may be their biggest investment. It also may help them understand how to grow the value of their dealership, and maximize their return when it comes time to sell.