www. PowersportsBusiness. com

Powersports Business • September 2026 • 25

MATEL & STANEK

• CONTINUED FROM PAGE 21

an environment where information flows easily with clean financials, updated tax returns, and a clear narrative around the business. That preparation builds confidence for the buyer and leverage for the seller.

Most importantly, planning creates flexibility. The prepared dealer can choose when to go to market, work to increase value, and be patient if conditions aren’ t ideal. The unprepared dealer is often figuring things out on the fly: unclear value, uncertainty around taxes and net proceeds, messy diligence, and a buyer-driven timeline that forces rushed decisions and unnecessary concessions.

THE MISSING LINK Not nearly enough dealers connect the sale of their dealership to a full personal financial plan, and that’ s where we see some of the biggest disconnects.

Many owners hear“ financial plan” and think narrowly:“ How much cash flow can I generate after I sell?” Income matters, but a true plan is broader. Once the dealership is sold, your largest asset is no longer your business … it’ s liquid capital. That shift brings new priorities: estate planning( how assets are titled, protected, and transferred), Medicare and Social Security timing, and tax planning that goes beyond the year of sale.

Taxes sit at the center of all of this. It’ s not just what you pay in the year of sale; it’ s how you structure income in the years that follow. Are there opportunities to smooth income, take advantage of lower brackets, or incorporate strategies like Roth conversions when appropriate? It’ s also about flexibility— having different“ buckets” of money( taxable, tax-deferred, tax-free) so you can be intentional about where you draw from each year depending on market conditions and tax considerations.

When dealers don’ t connect these pieces ahead of time, the sale becomes a standalone event: close the transaction, get the money, and only then ask,“ Now what?” At that point, many of the best planning opportunities are reduced— or gone.

CALL TO ACTION If you’ re unsure what your dealership is worth, what you’ d actually net after taxes, or whether you’ re truly prepared to exit— those are real risks.

If you’ d like to learn more about how well prepared you are for an exit, reach out to Paulina Matel and Brad Stanek, financial advisers with Morgan Stanley— for a complimentary Exit Planning Checklist.