Automotive News - February 10, 2020 - Supplement - S2
New Horizons Ahead
Buying and selling dealerships requires forethought and planning.
With a new year unfolding, many dealers may find
themselves at starkly different career junctures as they
contemplate what lies ahead in 2020. For some, selling
their dealerships and moving on to new opportunities-
or even retirement-will be a chief priority. For others at
the opposite end of the spectrum, growth and expansion
through acquisitions will be top of mind.
The good news is that despite a turbulent year in 2019,
dealerships remain a solid investment that can deliver
value for both buyers and sellers. As of the third quarter
of 2019, average dealership pretax earnings were closing
in on the $1.5 million peak established in 2015-despite
a decline in new-car sales, according to figures from the
National Automobile Dealers Association. After a slow
start, dealership buy-sell transactions through the third
quarter of 2019 were on pace to top 200 for the sixth
consecutive year, according to industry statistics.
Selling a business can be a difficult, gut-wrenching
decision-perhaps one of the biggest a dealer will ever
make. For many dealers, building a business has been a
passionate, lifelong pursuit that's provided a strong sense
of purpose, not to mention wealth and community esteem.
As such, selling a business requires them to separate their
emotions from the process to get a clear-eyed view.
Buying a dealership poses its share of challenges, too.
The process is fraught with risks, not the least of which is
detecting operational flaws before signing on the dotted
line. Avoiding calamities like this requires extensive presale
scrutiny of all aspects of the business and real estate. It
also helps to develop a sound financing strategy that
maximizes the amount of capital available for operational
investments.
In this special report, automotive-industry experts from
Capital Automotive Real Estate Services (CARS), Crowe
LLP and Arent Fox LLP explain key factors that both buyers
and sellers should consider as they eye either acquiring a
dealership or putting one on the market. How do owners
determine a fair selling price? How do buyers avoid
financial surprises? And what is the best way to finance an
acquisition? With decades of experience on both sides of
the equation, these experts have many answers.
Dealerships remain
a solid investment
that can deliver value
for both buyers and
sellers
2
Automotive News - February 10, 2020 - Supplement
Table of Contents for the Digital Edition of Automotive News - February 10, 2020 - Supplement
Automotive News - February 10, 2020 - Supplement - Intro
Automotive News - February 10, 2020 - Supplement - S1
Automotive News - February 10, 2020 - Supplement - S2
Automotive News - February 10, 2020 - Supplement - S3
Automotive News - February 10, 2020 - Supplement - S4
Automotive News - February 10, 2020 - Supplement - S5
Automotive News - February 10, 2020 - Supplement - S6
Automotive News - February 10, 2020 - Supplement - S7
Automotive News - February 10, 2020 - Supplement - S8
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