The 3 things I regret about selling my dealership
My family and I founded and operated New Orleans’ BMW, Ducati, Triumph, and Vespa dealership for 17 years. Throughout that time, we grew up in it—both literally and figuratively. That dealership, which we called TTRNO, was part of the family; it effectively (or perhaps ineffectively) raised me. When the time came to sell it, and after the dust settled, there remained three significant things I think about daily. From these experiences that still keep me up at night, I hope you can learn and avoid the same pitfalls.
Letting Cancer Ruin Our Culture
For over a decade, I had what I call a "Sacred Bull"—a technician (though it could be any employee) who was my biggest producer but also my greatest source of anxiety. There were countless complaints, multiple employees quit, and half the handbook consisted of policies addressing his infractions. Another technician once told me, "You’ll never keep good techs if he stays," to which I shrugged and replied, "But he bills almost twice as much as everyone else." In that moment, I lost yet another great technician.
Sure, I had "warning" meetings with him and gave multiple "last chances," but this only emboldened him, making him feel invincible. I spent sleepless nights worrying that losing him would mean losing my holdback money—though, truthfully, that was just an excuse. I convinced myself that I wouldn't find talent capable of replacing him, but this turned out to be completely untrue.
When I eventually sold the dealership, he was still there. I assumed the new owners would recognize his value and maintain the status quo. However, within the first month, they fired him, recognizing that he was toxic. Surprisingly, the other techs immediately picked up the slack—not because they had to, but because the culture improved dramatically. The service team finally became a true team. They shared work, supported each other, and freely exchanged insights instead of hoarding information. They flourished—but only because the cancer had been removed.
My biggest regret was letting my team down by recognizing this issue and failing to act. Don't make the same mistake: cut out the cancer. It might hurt at first, but your organization will heal and thrive afterward.
2. Not Getting an Appraisal Sooner
When the time came to sell our dealership, we did our best, but as Benjamin Franklin once said, "By failing to prepare, you are preparing to fail." We had never created an exit plan—not a five-year plan, not a one-year plan, not even a "How much could we sell for next week?" plan. We went in simply knowing we wanted out. Looking back, I wish we had obtained an appraisal five years earlier and used that information to craft a strategic exit.
If we had understood the dealership's value before urgently needing to sell, we could have proactively improved the store and increased its value. Instead, we were just winging it. I naively assumed our "value" was evident through exceptional customer experiences and customer loyalty. But there was no concrete method to quantify these subjective factors—at least not until tools like Enthusiast Lifecycle Value (ELV) came along.
Had I known then what I know now, I would've consulted financial advisors like Morgan Stanley and brokers like Performance Brokerage sooner. This isn't a promotional statement; it's simply the truth. Recently, I’ve gained valuable insights from them about how dealerships are valued and how focusing on ELV significantly impacts a dealership's overall worth. If I had to do it all over again, I'd confront that initial (and mildly insulting) valuation head-on. Then I'd collaborate with my team, address necessary improvements, and build a clear roadmap toward our desired value.
If you're a dealer looking to understand your current valuation, build a roadmap to your desired future, align your team around this vision, and access the support needed to make it happen, reach out. I’d be happy to share the plan.
3. My Timing
It would have been fantastic to experience the success many dealerships enjoyed during COVID, but I sold mine in October 2019. Despite the unfortunate timing, there were numerous silver linings. One major positive was selling my dealership to a friend and fellow 20 Club member. Watching him take over and achieve incredible growth and success was genuinely rewarding. It meant a lot to me knowing I didn't set a friend up for failure, especially with a business my family and I had poured so much into.
Additionally, stepping away from the daily complexities of running a dealership allowed me to dedicate my full attention to supporting dealerships through Garage Composites. This new role brought immense joy and personal growth. During this time, many creative innovations emerged, including self-check-ins for service departments and resources like GarageCast. It also gave me space to explore customer lifecycles and their direct connection to dealership profitability.
This exploration sparked the creation of Ownex.io, designed to define dealership profitability through the lens of Ownership Experience. While my timing may not have aligned perfectly with the unexpected growth dealerships saw during COVID, it feels perfectly timed for shaping the future of dealership success.
