Alternate Options for Selling Your Business

When planning for retirement or transitioning out of your quick lube, you might think your choices are limited to passing down the business to an employee or family member, or sell it outright. While these are great options, they are not your only choices.

NOLN sat down with Valvoline’s Will Turkington, Director of Corporate Development, and Jeff Malicote, Senior Director of Business Development, to discuss our options for preparing to leave the business and help you decide what might be best for your situation.

Leasing Your Space
If you’re ready to exit the business but want to maintain ownership of your real estate, leasing might be the best choice for you.

If you own the land and building where your business is located, you may want to consider becoming a landlord. This is a particularly great option if your real estate has been passed down through your family.  By selling the business and leasing your property, you get to leave the busy day-to-day work of running a shop while still retaining the real estate and receiving consistent income. You’ll also eliminate the stress of property taxes, insurance, and any building maintenance.

“We can arrange a long-term lease with the owner as a part of the transaction,” said Turkington. “There's a lot of value in that for the former business owner because the rent check that they will receive every month is recurring income. We view it as a long-term relationship, and we commit to taking good care of the property so you don’t have to.”

If, after a few years, you decide being a landlord is not for you, there is also the option to end the lease and sell the building and real estate.  

“You’re not locked into being a landlord for 30 years,” said Turkington. “There's a lot of flexibility to sell the land and building whenever you wish and reinvest your capital elsewhere. It’s a wonderful opportunity.”

Joining Valvoline Express Care
If you are ready to start phasing out of ownership but still want to be involved in your shop, joining a program like Valvoline Express Care might be a smart choice.

“We have an independent platform branded Valvoline Express Care,” said Malicote. “It's about 300 stores across the U.S. and Canada. That program is built around the independent operator. We take the fundamental quick lube knowledge that we've gained in over 36 years of being in the business, and we package programs — whether it's marketing programs or training — and we take that knowledge to the independent operators to make them better. We help by improving their cash flow so that when they are ready to sell, they get a higher valuation out of the business.”

The program is built to help your business grow while the owner has complete control over their store. An outside perspective from an experienced team of operators can help you see what ways you can improve your business and help set you up for a successful future.

“We have what we call Express Care Business Advisors, who have spent an average of 15 years in the business and who are consulting with independent owners,” said Malicote. “It’s not about telling them what to do. It's about telling them what we see in the business and industry, and then giving them access to tools that can help them make the most out of these opportunities.”

Final Takeaway
Planning an exit from your business and the industry is a big decision. What may be the right choice for others might not be right for you. Understanding your options for the next phase of your investments or retirement and what they involve can help you make an informed decision and feel confident about the future of your business.

If you’ve decided it’s time for a change, contact the Valvoline Quick Lubes Team. 859-357-7303 or visit www.valvolinequicklubes.com