Exiting an automotive business—whether it is a dealership, body shop, or aftermarket operation—requires more than just putting up a “For Sale” sign or entertaining offers. A successful transition demands a disciplined, strategic process that minimizes risk, preserves value, and aligns with the owner’s personal and financial goals. This is where the Manage Phase of the Certified Exit Planning Advisor (CEPA) methodology becomes essential.
Developed by the Exit Planning Institute (EPI), the CEPA framework helps business owners plan and execute value-focused exits using a structured, multiphase process: Discover, Prepare, Decide, and Manage. Each phase serves a specific purpose in guiding owners through the technical, operational, and emotional aspects of leaving their businesses.
The Manage Phase is the fourth and final stage; it is where plans evolve into action. It is about transitioning from strategy to execution and actively managing the business to ensure a smooth, value-preserving exit.
Shifting the Gears – Owner Dependency to Operational Independence
In the automotive industry, the business often revolves around the owner. You might be the one pricing trade-ins by feel, negotiating with wholesalers, pushing service teams for productivity, and maintaining crucial relationships with OEM reps or fleet clients. While this hands-on approach builds success, it also creates dependency—something that reduces transferability and perceived value to a buyer.
The Manage Phase aims to reverse that. You, the owner, move from driver to navigator, while key managers begin to assume day-to-day leadership. This includes establishing or reinforcing Standard Operating Procedures (SOPs) across your sales, service, and parts departments. Clear SOPs increase repeatability and predictability, which are critical factors for value growth in the CEPA model.
This phase also calls for a gradual but deliberate hand-off of relationships. Begin transitioning contact with OEMs, vendors, and fleet clients to trusted managers or successors. If the business is under franchise agreements, review any transfer clauses now. Franchise transfer stipulations often require OEM approval or carry specific restrictions; waiting until the eleventh hour invites disruption.
Empowering the Next Generation of Leadership
If your successor is an internal leader—perhaps a family member, GM, or longtime employee—this is the time to build their confidence. Let them run meetings, engage with external partners, and make decisions. The CEPA methodology emphasizes human capital readiness. This includes evaluating whether your future leaders have the capacity and trust of the team to lead without you.
One CEPA best practice is creating a formal succession development plan. This includes performance metrics, coaching milestones, and opportunities to demonstrate leadership. Not only does this prepare your successor, but it signals to potential buyers or partners that the business can function smoothly without the founder at the helm.
Strengthening Financial Narratives
A clean set of books is a start, but the Manage Phase goes further. Buyers and investors want normalized financials that reflect the true economic value of the business. This involves removing discretionary owner expenses (e.g., personal vehicles, family salaries, non-operating travel) and aligning financial statements with industry norms.
For automotive businesses, key metrics to highlight include service and parts absorption rate; F&I gross per vehicle; floor plan interest management; warranty receivables cycles; and OEM incentive tracking and recognition.
You should also shorten close cycles and ensure reporting consistency across all departments. Your financial story needs to support a growth narrative and withstand buyer due diligence.
Driving Operational Sophistication Through Technology
Operational maturity is a key driver of business value, especially for buyers like private equity firms or regional consolidators. These groups do not want a business reliant on one individual; they want systems that scale.
In the CEPA model, this aligns with structural capital enhancement: strengthening the systems, data, and processes that
sustain performance. For auto businesses, this includes:
- A fully integrated Dealer Management System (DMS) that connects sales, service, finance, and parts;
- A modern Customer Relationship Management (CRM) tool for tracking engagement and referrals; and
- Digital service workflows that reduce paperwork, enhance efficiency, and improve customer satisfaction.
Sophisticated systems not only streamline operations but also provide the data visibility that buyers demand.
Emotional Readiness – A Crucial Piece of the Puzzle
The CEPA methodology recognizes that exit planning is not just technical; it is emotional. The Manage Phase addresses the personal and psychological readiness to let go. After all, this business may have been your life’s work—your legacy, identity, and source of pride.
This phase is your opportunity to step back gradually. Instead of an abrupt departure, you test the systems, evaluate the team, and build your life post-exit, whether that means retirement, advisory roles, or new ventures. A thoughtful transition lets you exit with peace of mind, knowing your employees, customers, and reputation are in good hands.
CEPA advisors often use Owner Readiness Assessments to help clients process this part of the journey. These tools explore lifestyle goals, identity outside the business, and readiness to embrace a new chapter.
Leaving on Your Terms
Ultimately, the Manage Phase is where the rubber meets the road. It is about making your business more transferrable, more valuable, and more independent—the very cornerstones of CEPA’s value acceleration approach.
When this phase is executed with intention, the result is an exit that is not just financially successful but emotionally fulfilling. Whether your path leads to retirement, a new enterprise, or philanthropy, the time you invest now ensures your business—and your story—lives on, even after you have stepped away.
By embracing the full scope of the CEPA methodology, you turn your transition into a transformation—one where your legacy is honored, your team is empowered, and your exit is truly on your terms.
Twelve Points Business Advisors is proud to have joined the Massachusetts State Automobile Dealers Association. An insightful article written by our very own Dave Clayman will be featured in the official monthly publication of Massachusetts Auto Dealer every month. Jump to page 34 to view his insight in the June edition.