We are working with buyers and investor groups looking specifically at motorsports businesses right now. So, it is a great time to see how much your business might be worth.
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This may be the best time to sell a Powersports business, ever.
The pent-up desire for people to “get outdoors” is creating a lot of interest in the powersports industry by investors and buyers.
According to Global Market Insights: The rising popularity of adventure sports has propelled the infrastructural development of outdoor recreational facilities including wilderness areas, theme parks, and trails. Increasing private sector investments in the construction of dedicated infrastructure for recreational and amusement purposes will augment the market demand. For instance, in February 2021, a new snowmobile trail was opened for operation in the northern region of Wisconsin state in the U.S. The 13.5-mile-long trail connects the Taylor and Price Counties and provides new route for power sports vehicle owners in the state.
Many powersports dealerships experienced a large increase in sales and profits due to the impact of Covid 19. Although there have been inventory shortages, we see this positive trend continuing. Selling your dealership when the industry is performing well, and cash flow is strong increases your ability to get the best price.
It goes without saying, the best time to sell a good business, is when it’s still a good business!
We are working with buyers and investor groups right now who are looking specifically at powersports businesses right now. So, it is a great time to get with a business broker and industry expert and see how much your business might be worth.
If you decide to list your powersports business now, you could expect multiple offers due to the pent-up demand. And the sale should go easier due to that fact that bank financing for the acquisitions of powersports dealerships is readily available with interest rates still historically low. If you are considering exiting your dealership(s), don’t wait too long as interest rates could start to increase.
Finally, the anticipated increase in the capital gains tax, from 20% to almost 40% for certain income brackets, has really ramped up the desire by many business owners to consider beating the rush and consider selling their business.
It’s not often you can find a rapidly developing line of products, with increasing publicly funded product facilitation, sold through fast-moving entrepreneurial independent dealerships who can make decisions quickly and react to a positive market.
The current powersports industry is exactly that. Making it a great opportunity to maximize the sale of a dealership, because it attracts multiple offers due to the opportunity it presents to a new investor.
Bob Harris
Business Broker
bharris@sunbeltmidwest.com
612-238-1284
