Succession Planning Blueprint – Bryan Stasch [RR 677]
Episode 677 •
21st September 2021 • Remarkable Results Radio Podcast • Carm Capriotto, AAP
00:00:00
00:40:56
Shownotes
Bryan Stasch, Vice President of Product and Content Development, ATI. Bryan Stasch began in the auto industry in 1984 as a technician before becoming general manager at a national franchise store and eventually sharing ownership of three successful auto repair shops. In 2000, he joined ATI as chief instructor and became deeply involved in developing and presenting all aspects of ATI’s coaching and training programs. In 2006, he became head of ATI’s member fulfillment department, overseeing all ATI coaches and related administrative staff. In 2019, he took on the role of VP of Product and Content Development, an area of expertise that he excels in.
Key Talking Points
https://aftermarketradionetwork.com
- Four words of death – “I don’t have time”. Don’t have time to focus on the things that create market value.
- Where does the sale price derive from- The profitability of the business, the owners take home money, times a multiplier of 2 or 3, is what automotive repair shops are selling for.
- N.O.P. (Bottom line and owner’s salary (expensed) if not part of production) + Interest expense + Depreciation + Amortization + Toys + One Time Expenses + Discretionary N.O.P. = Owners Cash. (Average of last 3 years) Multiply times 2.5 (?) = Sale Price
- Get the shop ready for an exit (planned or unplanned)- considering hiring a coach during the process and transition. The coach is your insurance and holds the owner accountable. Build a model you can duplicate so someone other than the owner can run. Could your business survive 60 days without you? Train others so the business isn't dependent on the owner. Develop a second in command. Get systems and processes documented.
- What is goodwill? Once the sale price has been determined that number is broken down into assets and goodwill to determine who, and how much, is paying taxes. Sale price, minus assets, equal goodwill.
- What does walk away money look like- Selling Price (100%) Broker/attorney (10%) Debt (10%) Taxes (20%) = Walk Away (60%)
- Owning property- using it as a retirement plan. Could sell the business and become the landlord for recurring retirement income. If you want to sell the property it should be two different transactions.
- Get the owner ready- what’s next for them? What do they need for retirement? How many years are planned for retirement? Is your family ready? What are their expectations?
- Get shop ready for the market: Financially-Maximize Owner’s CASH (Clean P&L), Drive Sales, Gross Profits Dollars and NET Dollars, 3 Years’ worth of Financial Data to PROVE IT. Operationally- Crew and Culture, Process Book/Operations Manual, Software and Equipment
- Thanks to Bryan Stasch for his contribution to the aftermarket’s premier podcast.
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