Selling our business – the journey so far

I’m sure that there are several on Humble Dollar who have navigated this path – selling a family business and moving on to whatever is next. We are part way along that journey, and it feels like a good time begin sharing our story.

For some background, we own and operate an automotive workshop in a small country town called Heyfield in Victoria, Australia. My Dad is now a 60 year veteran of the automotive industry, having commenced his apprenticeship at 16, and looking to finally exit at the age of 76. Dad tried to exit working life at 68 but found out he was not very good at retirement. He still really needed to be in business, so decided it would be a great idea to buy a workshop in Heyfield that had been on the market for some time.

I was 20 years in engineering and project management. I was reasonably successful, so each project got larger than the last. Once the budget got over a certain mark, everything went from interesting and satisfying to very stressful. So owning and operating an automotive workshop sounded pretty good.

Over the last 9 years we have exceeded our expectations. We started with no operating software, no customer list, no staff. Just a workshop and a steady trickle of local customers. We have been able to increase to 8 staff, build a really strong customer base and create a steady, profitable business.

But with my Dad now well into his seventies, and starting to see 80 on the horizon, we decided that it would be a good time to sell the business. This would give my Dad a chance to try out retirement again – I hope this attempt is better than his last! And at 51 it gives me the chance to tackle something new and different for my next chapter.

At this point we have a buyer that has had finance approved and is waiting for the final documents from the bank, so they can “sign on the dotted line”.  Every indication is that the sale will proceed successfully, but I’ll really believe it when the money is in the bank!

So while we wait for the bank, moving at it’s own glacial pace, some thoughts on the process.

Joys and sorrows of small business

Over 9 years we have had great joy and satisfaction from building a strong local business.

We have had very loyal and stable staff, many of whom started with us as apprentices or with no previous experience. We have seen all our team grow and develop. There were difficulties, challenges and mistakes along the way, but our crew has been a real strength of the business throughout.

We have also developed some wonderful relationships with our loyal customer base. In a small town, a business like ours feels very, very interconnected with the local community and economy.

But small business is hard. We work long, intense hours. Dealing with the general public is challenging. Modern motor vehicles are complex, and getting more so all the time.

Our time in this business has been a tremendous success, but that success comes only with lots of effort and grit.

Passing the baton

During the sale process, both my Dad and I have been well aligned that we don’t want to just extract every possible dollar from the sale. We want to be paid a fair price, but we want to drive past the workshop and see it thriving. To bump into our staff around town and hear that they still have interesting, well paid jobs.

I have often thought of an article by Nick Maggiulli, “Don’t take the last dollar” on his Dollars and Data blog. Nick argues (quite rightly I think) that striving to get every dollar in this particular negotiation won’t necessarily get you the long term result you would desire. That mindset has helped us keep a focus on what’s important. We regularly tell the buyers that we want them to succeed. That during the handover phase we will do all we can to set them up with the information and knowledge they need. That after handover we will remain available for any questions they might have.

It feels good to be passing on a business with these discussions being at the forefront, rather than arguing over line items in a contract.

What’s next?

For me, I refuse to think about that yet! As I said, I’ll believe a sale is complete when the money is in the bank. Then I’ll explore my next phase in life, maybe after a little holiday.

For my Dad, I really hope that he can navigate the transition to retirement better this time. Apart from his 4 year apprenticeship, all his automotive career has been either in partnership or as owner of a small automotive business. He has committed so much time and energy to that pursuit that moving into retirement will not be easy. But I’m hopeful and optimistic that at 76, nearly 77, he is better prepared than at 68!

**** 19th June 2025 update – Our buyers have quit their day jobs, and will soon be in our workshop “learning the ropes”. Suddenly my head is spinning! ****