Family-owned dealerships are “speed boats not cruise ships,” Jeff Spreen, owner of two franchises in California’s Inland Empire tells me this week. Spreen hopes he gets to make some speedy decisions in the future regarding acquiring more franchises. Meanwhile, he is working on selling Mazdas out of his new dealership in this week’s profile.
Boosting those sales should be made easier by what Edmunds.com forecasts will be the healthiest July since 2005 in terms of new car and truck sales. It is the beginning of what should be a strong second half, says Edmunds.
If you are buying a dealership, don’t get so excited that you forget some crucial details at the closing. For example, once you sign the APA, make sure all the fixed assets included in the agreement are still on the property. If they aren’t, the purchase price should be reduced by the value of that asset, advices Ira Silver of MBAF in his excellent column on the details to take note of at a closing.
And of course don’t forget to check out the latest buy/sells in this week’s Transaction News.
Enjoy!
