We all know that privately-held dealership groups are becoming more prominent in the automotive retail world. Along with that prominence, or perhaps a result of it, privately-held dealership groups are also getting bigger.
While few rival the likes of AutoNation (yet), I recently was reminded that privately-held dealership groups are not only growing, but becoming more powerful. Why else would Chrysler ask a privately-held group to sign a framework agreement?
I can’t talk about the specifics, so this week I take a look at framework agreements in general and their impact on both valuation and buy/sell deals.
Also this week, Erin Tenner, one of our regular contributors, alerts us to the pitfalls of land purchase or lease agreements, and some contractual protection mechanisms. Since real estate is a significant portion of any buy/sell negotiation, these may save you a big headache.
We also have the ever-popular Transaction News.
Enjoy!
