In today’s environment of roll ups, acquisitions, financial requirements imposed by manufacturers, changes in driving habits, the types of vehicles being produced, and the ever-changing economy, it is no wonder that dealers are questioning the future of their business. Many options are available, and none are really bad, but one must figure out what is best for you, the owner.

Chris Irwin is a third-generation auto dealer in New Hampshire. He recently acquired a Chevrolet franchise from Tom Cantin. The transaction — and the transition — was smooth partly because the franchise passed from one family-owned group to another.

Buy/sells are exciting, intense, and hopefully rewarding for all parties when completed. They come with ups and downs, surprises, and different opinions. Both sides churn through their checklists, working to validate their opinion of valuation.

No dealer likes to think his or her employees are stealing from them. But it happens, and when it does the cost can be substantial. And all dealers have to cope with issues such as fake identity scams. Those threats are not only costly in terms of dollars, they can even scuttle a buy sell deal, so taking preventative measures is vital.

Gill Automotive Group in April acquired H & J Chevrolet in Kerman, California. The single-point dealership wasn’t struggling, which most of his acquisitions are, Jay Gill tells Getting to Go! But he was compelled to buy it for one main reason – Gill lives in Kerman.

Dealership facility upgrades are a constant point of contention between factories and dealers. Factories can impose a wide range of facility demands, ranging from light brand image or signage updating, to complete facility refurbishment, rebuild, or even relocation. Dealers view many such requests as onerous and/or unlikely to provide any boost to sales.

The U.S. auto retail sector has in recent years seen a growing number of foreign firms and individuals seeking to acquire dealerships here. Meanwhile, U.S. dealership groups are also starting to look across the border for acquisitions.

The CPAs from Rosenfield & Company, PLLC were recently approached by a small group who own a very successful dealership group in India that are looking to acquire dealerships here in the U.S. It is an indication of how foreign investors from near and far are eyeing the U.S. auto retail market as a lucrative investment opportunity.

Dalton Corporation, headquartered in Guadalajara, Mexico, recently acquired its first automotive franchises in the U.S. Dalton’s vice president of innovation and new ventures Juan Carlos Rodriguez Villava spoke with Getting to GO! about Dalton’s U.S. expansion plans and the importance of working with a law firm with experience in cross-border transactions.

In today’s unique market, many dealers are considering their buy-sell options. Getting a sense of the value of the business is the typical starting point. Brokers and investment bankers who focus on dealership transactions are quick to point to rules of thumb, especially the earnings multiplied by a multiple, where the multiple is based entirely on the franchise represented by the dealer. But this approach alone does not account for the wide variety of variables that are involved, nor does it deal with dealership real estate. While the earnings-times-multiple approach provides a quick gauge of value, both sides of this mathematical equation deserve some further attention.