Even as whiffs of a sales plateau and nervous investors unwilling to pay top dollar for dealerships float about, the buy/sell business continues to reach new heights. This week, the largest ever private capital dealership acquisition occurred when Holman Automotive acquired Kuni Automotive.
The deal highlighted the role dealerships play in non-automotive areas. One reason the Kuni family decided to sell to the Holman group is that the deal provided continued funding to a charitable foundation started by the Kuni family that benefits cancer research and developmentally disabled adults. I wonder how that factored into the final selling price?
Recently in this publication, Mark Johnson, who advised the Kuni family on that transaction, wrote about ways to structure a buy/sell agreement that could help thwart a manufacturer trying to exercise right of first refusal. My dealer profile this week involves an agreement that sounds a lot like such a tactic though Peter Blackstock, who recently acquired Ford Lincoln and Chrysler Jeep Dodge dealerships in California, didn’t phrase it exactly like that.
Blackstock is a very forward-looking guy who has embraced digital marketing and updated his staffing to attract younger buyers, so you may be surprised to learn his age as you read the story.
Also this week we welcome a new contributor to our pages. Audientis LLC, an advisory firm that works with dealership on crucial areas such as succession planning and mergers and acquisitions.
It can be hard to face one’s own mortality, but not having a succession plan in place can have unfortunate and unwelcome consequences, as Audientis COO Branson Smith points out in his column. The moral: Start planning now.
As always we have the ever-popular Transaction News.
Enjoy!
