Automobile dealerships are selling for record multiples but two things are certain:
1. Business is Cyclical
2. Timing is Critical
If we accept the fact that we are at or near the top of this valuation cycle, how long will it be before the industry peaks again? After all, it wasn’t long ago that the industry was in a chaotic state. And today:
The 85-year-old franchise and distribution system is under attack;
Manufacturers are taking even more control away from the dealer;
Margins continue to shrink;
The internet has blurred the lines of a dealer's market area;
Government regulations are more complex, interfering, and oppressive; and
The days of being an "independent" dealer are waning.
If you're a dealer of a certain age/stage and have not formulated a definitive strategy, maybe it's time to do so. If not, are you and/or your family prepared to wait until the next cyclical upturn that could be 8-10 years down the road? Whatever your ultimate decision, the question of "timing" is critical and worth an objective discussion and valuation.
At the end of the day, a dealer wants three major things from the business:
1. Return on Investment
2. Personal Gratification
3. Comfortable Lifestyle
LAS’s primary goal is to help the dealer receive the maximum value for a dealership and its associated properties. A key issue is confidentiality. Every step in the process must be completed in a discreet, efficient manner. Stu Lasser and Lasser Advisory Services take pride in the practice of strictly adhering to this basic principle. Integrity is the foundation of Lasser's philosophy.
Stu Lasser is an objective, strategizing third party and serves as an experienced sounding board and facilitator for automobile dealers. He leverages his knowledge and contacts by providing:
Identification and prioritization of the dealer’s professional goals
An extensive network of industry professionals and dealer contacts
Implemention and facilitation strategies for dealers looking to transition
Expert business valuations
Maximum financial remuneration for dealerships and associated properties
Experienced legal testimony
Brokerage services for dealerships and associated properties