Long ago, in a galaxy that seems far, far away, I returned from China, where I was the bureau chief for Automotive News, to live in Los Angeles and cover dealerships for the same publication. One area that totally mystified me was the whole finance and insurance side of the business, even after a colleague gave me a detailed explanation of it over lunch at NADA that year.
I have a much better grasp of dealership F&I nowadays, though I still can’t claim to be an expert. That’s why I recruit experts such as our two contributors this week to write columns for Automotive Buy Sell Report!
Both relate to valuing a dealership in a buy sell negotiation. First, Don Ray of Portfolio Reinsurance reminds us that those spiffs employees earn from providers count as income that a buyer will want to know about and which the seller should be aware of. Those expenses have an impact on the bottom line, after all.
I claim to have a better grasp of dealership F&I issues nowadays, but our second column this week addresses an area I am still a bit mystified by, captive insurance. Mercedes Hendricks of Dannah Capital Partners discusses captive insurance and how it can be used to bolster the value of a dealership.
As always, we have the always-popular Transaction News.
Enjoy!
