The year 2015 is almost over. For the automotive retail industry it has been a great year, with a record sales rate. It has also been a fantastic year for dealership mergers and acquisitions, especially if you were a seller. Valuations were sky-high for some franchises in key markets. Even if you didn’t own a luxury brand in the Northeast, rather you owned a domestic franchise in the middle of the U.S., you likely found a willing buyer at a good price.
That will begin to change in 2016. To be sure, the buy/sell market will remain vigorous. But slowly rising interest rates and an expected cooling off of sales towards the end of 2016 and into 2017 will make pricing your dealership correctly crucial. In this issue, Mark Johnson of MD Johnson, Inc. considers the topic of proper pricing.
Even if you think the market will begin to cool next year, rushing a decision to sell your dealership is a mistake. There are a number of things to consider before deciding to sell, and in this issue Rick Kotzen of Crowe Horwath — in the first column of a series on preparing to sell your dealership — discusses making a graceful exit from ownership. From preparing yourself mentally to no longer being the decision maker to assembling the right team, there are many steps to take before starting the actual process of selling.
Automotive Buy Sell Report has been reporting on the buy/sell market for more than a year now. We’ve grown and, I hope, improved in our coverage. We are always looking for new contributors. If you would like to write a column or columns for us, please contact me.
In 2016 we will launch an exciting new type of directory unlike any out there. Dealerships and professionals in the buy/sell industry will be able to showcase themselves and their businesses rather than their inventory.
We also have the year’s last listings of Transaction News.
Happy New Year and Enjoy!
