Just as I began to write this a story popped up reporting that Standard & Poors had cut its estimate for U.S. auto sales this year from 17.8 million to 17.5 million. S&P cited slowing consumer demand and the impact of Brexit on the U.S. economy.
This only adds to the slightly gloomy atmosphere in the industry these days. After a bull run, many feel that auto sales growth must begin to slow then plateau. Of course, a plateau of 17.5 million wouldn’t be shabby. But plateau means no growth, and that is not good.
What impact will the slowdown have on the dealership buy/sell market? Depends on who you talk to. But the chance of a slowing market will undoubtedly cause many who are sitting on the fence regarding selling to decide to sell now in the hope of getting a higher price. Given that mood, I figured it was a good time to run part one of Rick Kotzen’s series on preparing to sell a dealership. The advice is timeless, and the information may come in handy for some of our readers.
M&A aka buy/sell is one of the “Hot issues affecting auto dealers” according to DHG Dealerships. Learn what the other five hot issues are in our column this week. Acquainting yourself with them can help you more effectively run your dealership, and effectiveness will be called for as the market becomes more challenging.
As always, we also have Transaction News.
Enjoy!
