A recent transaction that saw a long-time dealership executive re-enter the retail automotive world is an example of how new forms of capital are coming into play in the buy sell sector. It also illustrates the importance of personal relationships in the buy sell world even as the role of consolidators grows.

Tariffs have long been used to regulate trade. Companies seek ways to reduce costs, including "tariff engineering"—modifying products to qualify for lower tariffs. While legal, improper execution can lead to severe penalties, as seen in Ford Motor Company’s recent case.

Recently, I was talking to an executive at a major auto manufacturer, and he shared that not only were they currently revising their annual business plan daily, but they also had a team of five full-time employees war-gaming different scenarios.

A new administration in the White House always brings change. This time those changes are coming faster than usual.

Dealers are always optimists, and they are feeling good about a new administration that seems to be pro-business. However, while it is still early days, it appears the policies may be a mixed bag where boosting the retail auto industry is concerned.

Mike Brown was working as the fixed operations director for nucar auto group when, in August of 2024, he got a call from David Rosenberg. Rosenberg, whom Brown had worked for in the past, had an intriguing offer. Rosenberg, owner of DSR Motor Group, was working on an acquisition.

Outside capital can be a valuable resource whether to a dealer with only a few franchises seeking to grow his or her dealership group or a larger group looking to get even bigger. But the rewards also come with risks, as two examples of outside capital show.

If you’re considering working with a private equity firm in a buy sell deal, be prepared for hurdles you are unlikely to encounter with a traditional investor. There are advantages to working with PE, however.

While you may have seen headlines about private equity moving into the buy sell world, that can actually be something of a misnomer. It is generally more accurate to say that different forms of outside capital, of which private equity is one, are investing in automotive dealerships. Those investors differ in the amount they invest and terms under which they invest.

Although potentially customized and of a different vintage for each dealer, we looked at a copy of CDK’s Master Services Agreement (the “MSA”) to see how it addresses CDKs privacy and cybersecurity obligations and liability.