Reading the headlines for September auto sales, it is a bit difficult to figure out whether these are the best of days or the worst of days (with a nod to Dickens). Examples: U.S. Auto Sales Beat Estimates as Pickups Carry Load; U.S. Auto Sales Slip in September; U.S. Car Sales Revenue Fell in September.
Okay, these lean a bit more to the bad side. But they aren’t entirely negative. That’s because sales growth is leveling off, but we’re still at a SAAR of 17.76 million. That is being maintained on the back of rising incentives, however.
Meanwhile, the pace of buy sells has slowed a bit, but that is mainly because the publics aren’t in the market much. There is still plenty of private equity activity.
The factors that cause accelerating buy sell activity are still very present, including an aging dealer population without successors and the increasing complexity and cost of running a dealership.
Some of those aging dealers are likely owners of a dealership that is structured as a C-corporation. The tax implications when selling a C-corp can be discouraging, but in this issue Crowe Horwath offers some advice on how to make the hit less painful.
Bankers are generally a part of a buy sell at some point, but not always the first party the players think of consulting from the onset. They can be a valuable resource, however. In this issue, new contributor Hersch Gornbein makes the case for consulting your banker when you are doing a deal.
And don’t forget (as if you would) Transaction News.
Enjoy!
