SUCCESSION PLANNING
Succession by design
How dealers can protect value and plan their exit
By Brian Ethridge
Photo credit: © Adobe Stock- Andrey Popov
Succession planning has long been treated as a future problem across outdoor power equipment and landscaping dealerships. As consolidation accelerates, margins tighten and generational dynamics shift, the industry is increasingly confronting a simple reality: waiting too long can cost owners millions.
Whether transitioning to family, selling to employees or pursuing an external acquisition, today’ s dealership exits are more complex, more scrutinized and more dependent on preparation than ever before.
“ It’ s not just about selling a business,” Pat Albero, senior partner at Performance Brokerage Services, said in an interview with OPE +.“ It’ s about making sure the person exiting actually gets what they need after taxes, after structure and after everything else is considered.”
That shift— from transaction to strategy— is redefining how successful dealers approach succession.
A different kind of business
OPE dealerships are not typical small businesses. They are capital intensive, operationally complex and deeply tied to relationships— from OEM partners to technicians to long-standing customers.
That combination creates unique challenges when it comes time to transition ownership.
“ Equipment dealerships can be uniquely challenging to transition because they’ re asset-heavy, relationship-heavy and the economics can be unforgiving,” financial advisors Anthony Nasca and Paulina Matel of Morgan Stanley told OPE +.
Unlike many businesses where valuation centers on revenue growth, dealership value is tied to a broader mix: inventory, real estate, service absorption, manufacturer relationships and consistent earnings.
Margins, often in the single digits, leave little room for error. Seasonal swings— driven by weather, regional demand or delayed spring starts— can dramatically impact financial performance in any given year.
Add in a tight technician labor market and evolving OEM expectations, and succession becomes less about timing the market and more about building resilience.
Internal vs. external: A reality check
For decades, many dealership owners assumed the next generation would step in. Increasingly, that assumption is proving unreliable.
“ I wish I could tell you that it was the majority of kids or family members taking over,” Albero said.“ But that’ s not what we’ re seeing.”
16 OPE + May 2026 www. OPE-Plus. com