Digital Dealer - July 2018 - 13

...A BUSINESS THAT YOU MOST LIKELY HAVE
SPENT DECADES BUILDING, WHICH HAS PEOPLE IN
IT THAT YOU HAVE EMPLOYED, BUILT LIVES FOR AND
INVITED INTO YOUR FAMILY..."
aren't depending on profits
to support your lifestyle?
Do you feel confident you
will receive the value you
deserve while also providing
an opportunity in ownership
to your successor? What
covenants need to be developed, agreed upon, and put
into place between you and
your successor while you
are dependent on them to
operate the store, but they
are responsible for servicing
a note to you. What is the
ultimate exit strategy that
separates you from the
day-to-day realities of the
auto business? If there are
no family successors, who
do you identify internally
to become partners with to
ensure they maintain the
culture you have worked
hard to develop into the
future. These and many
more are the questions that
need to be answered to feel
confident you can proceed
with an internal buy/sell.
But many of you may
be thinking; "why bother?"
Many of these questions
seem like topics you would
rather not think about at a
time when you are either
considering the future of
the automotive business or
debating your exit strategy.
From a practical standpoint,
I could agree. Selling to the
highest bidder, taking your
money, and being on your
way has its advantages. But
when we are talking about

a business that you most
likely have spent decades
building, which has people
in it that you have employed,
built lives for and invited into
your family, and have the
opportunity to see the next
generation of successors
succeed in ways you have,
why would you not consider
the every opportunity to

why an internal buy/sell ensures your legacy continues
with the people you have
selected to take over.
Ownership: Continuing to
stay involved provides you
the purpose and economic interest in businesses
success. Any form of a
protracted buy-sell can
be created to make your

CONTINUING TO STAY
INVOLVED PROVIDES
YOU THE PURPOSE AND
ECONOMIC INTEREST IN
BUSINESSES SUCCESS."
seek an internal buy-sell.
And many of you may be
asking "Why work to stay in
the business?"
Let's start with legacy:
If it means something to
you, then we could stop
hear. The continuation of a
family business to capable
and committed community-minded successors or the
perpetuation and opportunity
you provided for key managers to become owners is a
noble cause and one where
I would say you have the
most potential invested. In
most cases, you have built
the company, put your name
on it, and have invested
your blood sweat and tears
into its success. Ensuring
that the next owner/operator
keeps many of the same
people, customs and culture
is important to you. That's

successors earn their way
in and provide a runway for
you to determine their ability
thus creating a win-win for
both parties.
Ancillary Benefits:
Needless to say, the car
business provides many
other benefits than pure
profits. The cars, the trips,
the awards the ancillary
businesses are just a few
of the many benefits that
coincide with your continued
involvement in the industry.
Opportunity for family
and long-term employees: Providing family in a
business the opportunity
to grow into the leaders of
tomorrow is a worthwhile
endeavor. I will be the first
to say, it will be a challenge,
but the rewards are plentiful.
Continuing the culture that
you have built also ensures
D I G I TA L D E A L E R . C O M

you continue to provide an
opportunity to the long-term
employees who have made
you a success.
Community: Many dealerships have been a part of
their local communities for
decades. You have given to
the local charities, supported
the youth teams and raised
money for charities. Staying
involved and in business
ensures you can continue to
support and be a part of the
communities you live in and
do business.
These and many more
are the reasons to consider
when asking yourself, "Why
work towards an internal
buy-sell versus (transition
of ownership) versus selling
to a third party?" While your
friends may be selling, or
you're getting the calls that
go around the industry, I
suggest you consider the
above when looking at
your situation to determine
whether the right course
of action is an external or
internal buy/sell. Each will
have its merits and challenges but only one keeps you in
the game.
CHAMP RAWLS, being a part of
his own family's business, has a
unique insight into the difficulties,
challenges, and triumphs families
face when combining family and
business. Champ has been officially
associated with The Rawls Group
(rawlsgroup.com) since 2012,
although it could be said he become
a part of the team in 1984 when he
was born into the family business.

J U LY 2 0 1 8

13
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Table of Contents for the Digital Edition of Digital Dealer - July 2018
