New types of investors are eyeing the dealership industry. We all know that. Now, we also know which dealership group George Soros has invested in. The Soros family chose to go with a long-time partner, Mark McLarty, who is just beginning to grow his new dealership group here in the U.S., McLarty Automotive Group.
Two other prominent families have also invested in the Group. Now you might say, “Oh, yes, these are family offices, a new type of investor in the dealership world.” But McLarty insists that the families themselves are the investors, not any fund or “office” that invests the family’s money.
He can say that because McLarty has worked with Soros for decades, and also personally knows the other two families who have invested in his group. McLarty sees these kinds of long-term investors as a way to avoid pressure to report quarterly results. McLarty would rather just focus on creating the best possible team of managers to grow his company.
When I talk to dealers who have just acquired a new dealership, nearly all of them tell me they bought the franchise because they think they can improve some aspect of the business. Sometimes it is selling more new or used cars, sometimes the service side of the business, etc.
Often, new owners plan to invest more in marketing to find new customers, as well. This week, Peter DeTrempe of Taylor Strategic Relationships talks about a new customer pool that a new dealership owner may not have thought of – people who have recently moved to the neighborhood the dealership is in. DeTrempe suggests some simple steps that can make those new arrivals your new customers.
We also have the never-neglected Transaction News.
Enjoy!