What to consider when buying or selling an automobile dealership.

We are often asked, “How have you been able to close every deal you have sent to the factory for approval?”
The answer is simple.
You have to know the answers to the following questions.

  •  Proper capital structure and source of unencumbered funds
  •  Partnership agreements; Understanding what the factory MUST have for approval
  •  Facility requirements and the facility addendum upon application
  •  Potential add points to the market; when to fight a conditional approval
  •  Demographic and property study; 1000 yards from greatness
  •  Building a pro forma to properly compete for the acquisition. If accounts advised JFK we would never have went to the Moon.
  •  Environmental issues and the recent changes to CERCLA
  •  Stock vs Asset; What you should and should not do EVER
  •  What’s the difference between the acquisition pro forma and application pro forma?
  •  C Corp vs S Corp sale and the built-in gains tax. Know this if you would like to keep some of your money.

This is a small part of what MD Johnson, Inc. does for and shares with their clients.

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