By Alysha Webb, Editor and Publisher
Though the publics seem to get more press, family-owned dealerships are still a major presence in the U.S. dealership world. All family-owned dealerships face a common issue – who will run the business after the current generation retires?
In the past, it was almost always one of the owner’s sons. Women are playing an increasingly larger role in the dealership world now, creating more options for owners. But succession is still an issue that faces every family-owned dealership. Like going to the dentist, dealing with succession issues may not be fun but putting it off can have undesirable results.
In this week’s issue CPA Ira Silver of MBAF goes over some details you need to consider related to succession. For one, he reminds us that retirement is not the only reason for succession to occur. Divorce or default on debt are two other scenarios that could force the succession question. Bottom line: It is best to have a succession plan in place sooner rather than later.
The next generation is already involved in the business at the Jeff Wyler Automotive Family. As Jeff Wyler tells Automotive Buy Sell Report, his son works with him to identify potential acquisition targets for the group, one of the largest in the Midwest. Wyler specifically mentions succession issues as a red flag for a potential acquisition.
Also, check out our Transaction News to find several examples of recent ownership changes related to succession.
Enjoy!
