Digital Dealer - January 2019 - 19
CHART 1
Percentage of Family Businesses Owned
by Successive Generations
2015
Some are concerned that
the value of their inherited
family enterprise will decline,
rather than appreciate.
These risks, coupled with
the challenges associated
with transitioning to higher
generations will continue to
be a driving force for further
industry consolidation. (See
Chart 2)
A GROWING POOL
OF FINANCIAL
INVESTORS SUPPORT
CONSOLIDATION
SOURCE: HARVARD BUSINESS REVIEW
CHART 2
Approximate Number of U.S. Dealership Owners
1930 - 2050
The dealer count has declined by half every 40 years. The question on the minds of many auto
retail families is what the next 40 years will look like. This is particularly true for families who got
their start in the 30s and are now in the process of transitioning to the fourth generation.
SOURCE: NADA, KERRIGAN ADVISORS ANALYSIS & RESEARCH
store count required for success rises, many of these
families realize the skillset
required to run a handful of
dealerships is quite different
for a large multi-dealership
group. This is particularly
true for the third and fourth
generations who are in their
20s and 30s. These up-and-
comers see an industry that
will transform significantly
over the next 20 years,
making their careers more
volatile and challenging.
D I G I TA L D E A L E R . C O M
With all the change
expected in auto retail over
the next two decades, it may
seem surprising that financial investors are eager to
support dealers' expansion
plans. The volume and interest of equity and debt investors in auto retail continue to
rise, despite the much-discussed risk to the industry's
future. For the same reason
some dealers feel the time
is right to sell, an increasing
number of sophisticated
investors believe the time
is right to invest. These
well-funded investors see a
tremendous opportunity to
support growing auto retail
groups who are seeking to
capitalize on consolidation
and the inevitable opportunities industry disruption will
create.
The make-up of these
investors is broad and
diverse, from high net worth
individuals to institutional investors. On the equity side,
family offices are the most
common because their longterm investment strategies
are aligned with those of the
OEMs and thus approvable
in a buy/sell. In addition,
Continued on pg. 20
JANUARY 2019
19
http://www.DIGITALDEALER.COM
Digital Dealer - January 2019
Table of Contents for the Digital Edition of Digital Dealer - January 2019
Digital Dealer - December 2018
Contents
Message from the Show Director
6 Facing Sales Slump, Automotive Brands Can Win by Adding Real-World Value in the Digital Shopping Journey BY Brian Solis
7 Reasons for a 2019 Social Media Policy Review
'OVER-THE-TOP' Advertising! BY Jim Boldebook Dealer Ops
Buy/Sell Trends Expected in 2019
The Two Non-Negotiable Pillars of Accountability
7 Questions to Ask When Hiring a Customer Service Trainer
How to Add $1.0MM to Your Bottom Line Profits
The Art and Science of Parts Inventory Reconciliation
Trade, Tariffs, and Labor
Building Your Business by Building Your People!
Great Service Managers Follow a 4C Approach
Collision Shop Liability Is a Serious Issue for All – Read This!
Does Your Store Exemplify Consistency & Excellence or Complacency & Mediocrity?
Increasing Service Business Through Convenience – A Tactical Approach
5 Questions That Are Missing from Your F&I Customer Interviews
How to Drive Sales with Predictive Analytics BY JOHANNES GNAUCK
Digital Dealer - January 2019 - CT1
Digital Dealer - January 2019 - CT2
Digital Dealer - January 2019 - Digital Dealer - December 2018
Digital Dealer - January 2019 - Cover2
Digital Dealer - January 2019 - 1
Digital Dealer - January 2019 - Contents
Digital Dealer - January 2019 - 3
Digital Dealer - January 2019 - Message from the Show Director
Digital Dealer - January 2019 - 5
Digital Dealer - January 2019 - 6 Facing Sales Slump, Automotive Brands Can Win by Adding Real-World Value in the Digital Shopping Journey BY Brian Solis
Digital Dealer - January 2019 - 7
Digital Dealer - January 2019 - 7 Reasons for a 2019 Social Media Policy Review
Digital Dealer - January 2019 - 9
Digital Dealer - January 2019 - 'OVER-THE-TOP' Advertising! BY Jim Boldebook Dealer Ops
Digital Dealer - January 2019 - 11
Digital Dealer - January 2019 - 12
Digital Dealer - January 2019 - 13
Digital Dealer - January 2019 - 14
Digital Dealer - January 2019 - 15
Digital Dealer - January 2019 - 16
Digital Dealer - January 2019 - 17
Digital Dealer - January 2019 - Buy/Sell Trends Expected in 2019
Digital Dealer - January 2019 - 19
Digital Dealer - January 2019 - 20
Digital Dealer - January 2019 - 21
Digital Dealer - January 2019 - The Two Non-Negotiable Pillars of Accountability
Digital Dealer - January 2019 - 23
Digital Dealer - January 2019 - 7 Questions to Ask When Hiring a Customer Service Trainer
Digital Dealer - January 2019 - 25
Digital Dealer - January 2019 - How to Add $1.0MM to Your Bottom Line Profits
Digital Dealer - January 2019 - 27
Digital Dealer - January 2019 - The Art and Science of Parts Inventory Reconciliation
Digital Dealer - January 2019 - 29
Digital Dealer - January 2019 - Trade, Tariffs, and Labor
Digital Dealer - January 2019 - 31
Digital Dealer - January 2019 - Building Your Business by Building Your People!
Digital Dealer - January 2019 - 33
Digital Dealer - January 2019 - Great Service Managers Follow a 4C Approach
Digital Dealer - January 2019 - 35
Digital Dealer - January 2019 - Collision Shop Liability Is a Serious Issue for All – Read This!
Digital Dealer - January 2019 - 37
Digital Dealer - January 2019 - 38
Digital Dealer - January 2019 - Does Your Store Exemplify Consistency & Excellence or Complacency & Mediocrity?
Digital Dealer - January 2019 - 40
Digital Dealer - January 2019 - 41
Digital Dealer - January 2019 - Increasing Service Business Through Convenience – A Tactical Approach
Digital Dealer - January 2019 - 43
Digital Dealer - January 2019 - 5 Questions That Are Missing from Your F&I Customer Interviews
Digital Dealer - January 2019 - 45
Digital Dealer - January 2019 - How to Drive Sales with Predictive Analytics BY JOHANNES GNAUCK
Digital Dealer - January 2019 - 47
Digital Dealer - January 2019 - 48
Digital Dealer - January 2019 - Cover3
Digital Dealer - January 2019 - Cover4
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