The retail automotive industry is constantly evolving, as does the value of a dealership. Having an evaluation completed can be beneficial to evaluate share or stock values, for successorship planning, estate planning or an exit strategy. There are many factors that need to be considered when pricing a dealership and many dealer owners have a tendency to over price their store.
Know Your Value
Change can bring emotional stress, which can make the decision making process difficult. Knowing the value of your dealership is a critical factor in making informed decisions about the future direction of your business. It is better to plan and be prepared rather than being faced with a challenging situation.
Having A Dealer Valuation
In the course of facilitating buy/sell transactions, Dealer Solutions North America can provide a valuation and consultation to the dealer to establish the asking price of the dealership.
We are consistently talking to buyers, sellers and industry leaders which enables us to uncover trends in calculating blue sky, what multiple should be used and on what basis should that multiple be based upon. Allowing us to obtain an understanding of which brands are hot and where the hottest locations are for new points across Canada.
Dealer Solutions North America has arranged financing for expansion projects and out of trust situations.
When a dealer is faced with a large expansion the standard bank policies may not always address their needs. Over our many years we have compiled a substantial database of bank contacts, private lenders and equity funding prospects that will finance expansions.
Some of our financiers assist with out of trust financing, inventory financing and in house lease portfolios.
In-House Lease Portfolio
We have an extensive buyers list for any size in-house lease portfolio. Our lease portfolio buyers include regional and national based companies. These clients are experts in valuating any type of lease portfolio regardless of the complexities.
Dealer Solutions North America can work with owners of these lease portfolios to ensure they receive the maximum value for their asset.
Often times when looking at succession planning the dealer may not necessarily have family to pass the business on to. When this happens we can help in assisting in the search for qualified candidates for minority partnership.
The Right Candidate
A minority partner is often someone currently in a General Manager position and looking for an opportunity to buy into a store. This type of candidate works well as it allows the existing dealer to bring someone in and over time transfer the dealership to the candidate.
Why Have A Minority Share Partner
Another attractive point with minority share partners is that it allows the dealer to have a timeline for an exit. This relieves the pressure of selling when they have decided they are ready to retire.
We Can Help
Dealer Solutions North America is uniquely positioned to assist any dealer that is contemplating such a strategy. In conjunction with our sister company Auto Careers Group, our automotive recruiting agency, allows us access to an extensive database of candidates.
Succession planning can be a difficult subject to cover with a dealer. This is when the dealer begins to think and plan for their own exit often many years ahead of that actual exit date.
Dealer Solutions North America assists in succession planning by understanding what the dealers plans are, helping them put together a strategy for that transition and most importantly a fair valuation for transition.