Auto Notes -- March 2012



Excerpt from SALES OF DEALERSHIPS: 2012

Good News and Bad News

The good news is that there are now buyers for vehicle dealerships. Transactions have, after a prolonged period of limited activity, increased significantly over the last year. Buyers have come back into the market, and there are dealers who want to sell. The bad news is that deals have become more difficult to negotiate. Buyers are being more cautious. Recent past history has tempered dealers’ risk tolerance.

What Happened To The Buy-Sell Market In 2008?

As dealers are painfully aware, the retail automotive market declined precipitously during 2008 and 2009, and the malaise continued through 2010. The combination of an economic downturn, bankruptcies by Chrysler and General Motors, and the lack of retail automotive financing were all factors. Employee lay-offs were common, and some dealerships were forced to close. To survive, dealers focused on cutting expenses and trying to keep or find floor plan lenders. Dealerships for sale were generally in financial distress. This resulted in fewer sales of dealerships. Sales that did occur were difficult and complicated transactions. Many sales were completed with the approval of the Bankruptcy Court. Not unexpectedly, sale prices were depressed.

Please see full issue below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McNees Wallace & Nurick LLC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.