Non-traditional money moving into the auto retail segment isn’t a new thing. After Berkshire Hathaway’s acquisition of the Van Tuyl Group in 2014, however, it became a hot topic. It also opened more non-traditional investor’s eyes to the benefits of investing in auto retail.
This week I talk with a firm that was on to the value of a dealership acquisition before Warren Buffet made the headlines. GPB Capital has been acquiring dealerships since its founding in 2013. When I hear the term dealership consolidator, which GPB automotive retail managing director Scott Naugle used to refer to his company, it was at first a bit of a surprise. I always think of the publics, or other large dealership groups, as consolidators. Of course non-traditional buyers such as GPB Capital, which asked to be referred to as an asset manager focused on income-producing private equity, consolidation is also occurring, just a bit under the radar.
GPB keeps the original owners on board, and doesn’t change the name of the dealership or platform so it’s hard to know that there has been a change in ownership. So no loss of brand equity, among other benefits. I’m just rambling. Read the piece on my interview with Scott in this week’s issue.
Also this week, regular contributor Erin Tenner looks at a subject I haven’t seen much written on – whether a group owner should have a separate purchase agreement and goodwill value for each franchise in a multi-point deal. Manufacturers may ask for one purchase agreement and an aggregate goodwill valuation, but Tenner says to guard against that. To find out why read her column in this week’s issue.
And don’t worry, we also have our most popular section judging by what readers open first – Transaction News.
Enjoy!
