OPERATIONS

We talked with Jay Gaskins, head of operations and acquisitions for Spark Power Equipment, a multidealer power-equipment group, about succession planning and buying dealerships. You can find our entire interview in the OPE People podcast. Here are a couple highlights: your successor to these stakeholders, positioning them as the future of the company.

Conclusion: The time to start is now

Succession planning is a long-term strategy that protects both your family’ s legacy and your business’ s future. By planning ahead, you can avoid costly mistakes, reduce stress, and ensure that your dealership thrives under the next generation’ s leadership.

Ultimately, dealers must prioritize exit planning to protect their legacy, secure their financial future and ensure the continued success of their dealership and their personal financial well-being. With the right approach, dealers can navigate the uncertainties of exit planning and achieve a favorable outcome that aligns with their personal and financial goals.

Anthony Nasca, CEPA( anthony. nasca @ ms. com), is a certified exit planning advisor and financial advisor with the Stanek-Haack Group at Morgan Stanley in Chicago, and Brad Stanek( brad. stanek @ ms. com), is an executive director and financial advisor with The Stanek-Haack Group at Morgan Stanley in Chicago.

OPE +: When you’ re looking at a dealer to acquire, what are the first numbers you look at? Jay Gaskins: We look at revenue and EBITDA, that’ s the earnings before interest, taxes, depreciation and amortization. And if you ever watch Shark Tank, you hear Mr. Wonderful talking about“ multiple on earnings” and typically in this business someone’ s willing to pay anywhere from one to four times the earnings for the business. That multiple can shift greatly depending on different factors. I also look at the expense and how much will I have to spend to get this business up and running the way I want it run. And I look at the human capital. I greatly value good people and we want as many good people as we can get.

OPE +: Is this a good time for somebody to either sell or buy a power equipment dealership? Jay Gaskins: I think, just like investing in real estate or the stock market, today is always a good time to get started. The first thing I would say, and dealer consultant Bob Clements says this all the time, before you acquire that second dealership location, ask yourself this: If I were to leave my current store for 30 days, would this business still flourish? And if the answer is“ no” then you have work to do at your current location before you’ re ready to move on to another.

You can’ t be in two places at one time; you need to have that person you trust and who knows how to run it the way you want it to run and that’ s very valuable. In general, as far as buying or selling, I think I think it’ s a great time to do either.

www. OPE-Plus. com April 2025 OPE + 19