Comments Off on Recognize, Take Good Advice – Listening to advisors helps you tackle buy/sell transactions
By Phil Villegas
Dealers who have been through either the purchase or sale of a dealership know the stresses associated with executing that.
From the seller’s perspective, stresses can come from the thought of exiting the business, informing employees, negotiating the purchase agreement, tax implications of the sale, winding down operations and the ability of the buyer to close the sale.
Newer, smaller and more innovative automotive companies are emerging.
The early success of many of them will fuel speculation and capital investment into current and future automotive start-ups, under the belief that the traditional retail automotive network and its manufacturers are obsolete, and that these newer, leaner, edgier companies are the way of the future.
While the actions taken by Chrysler and General Motors to reduce their dealer counts are necessary for purely competitive reasons, the costs associated with these actions will extend far beyond those dealerships targeted to be closed.
If you’re in the market to purchase a dealership and have been sitting on the sidelines waiting for the market to bottom out, the next 90 to 120 days may yield some of the best buying opportunities that we will see for a long time. The key to making a good acquisition in this market is to be emotionally and financially disciplined.
Over the course of the last several months, there has been a great deal of debate about the nature and amount of any federal assistance for auto makers, with tense discussions focusing on sources of funding, terms of financial aid, and plans for restructuring and future success.