There is a lot of talk these days about the new types of buyers moving into the dealership buy/sell world. Private equity and family offices have the often-large capital resources needed to acquire dealerships and dealer groups in the increasingly pricey market.
Those buyers need capable dealership managers so that the manufacturers are confident someone who knows the dealership business will continue to run the operation. But, those capable dealership managers may want to own the dealership themselves. A new company is offering a path to ownership for those managers.
In this issue I write about my conversation with Rick Kotzen (a contributor to ABSR) about his new company Capital Automotive Financial. CAF provides funds to qualified dealership manager partners so they can realize their dream of ownership. CAF is a long-term investor and can also provide funds for growing a dealership platform. Read more about it here.
Acquiring a dealership includes many details that might be overlooked during the deal making process. Those oversights can be expensive. For example, a dealership’s privacy policies. Customer data and contact information are major assets that are usually transferred as part of a deal.
If the former owner’s privacy policies are outdated, that can open the new owner up to expensive legal challenges. In this issue, in part two of a two-part series, The Scali Law Firm offers advice on dealing with privacy policy compliance.
And of course we have Transaction News.
Enjoy!
