Groups Plan To Purchase Up To 40 Dealerships in 2009
If you’re considering the sale of your dealership, your chances of success might be improving. It looks like there is new money coming into the market with an eye to rolling up dealerships into operating groups
Long-time industry pro, Bill Shenk, is the point man for three groups, and his PowerHouse Dealer Services company has been retained to find and evaluate acquisition opportunities for these buyers.
The three buyers plan to purchase collectively up to 30 metric motorcycle
dealers and 10 Harley-Davidson dealerships in 2009 with more acquisitions planned for 2010, Shenk told me. The three groups did over $100 million in retail powersports business in 2008, he said.
Shenk wouldn’t tell me the names of the three groups or the money behind the groups. He did tell me that all three groups “are very liquid,” already have “successful OEM/powersports relations and operations,” so they can purchase and close on deals quickly.
The buyers, Shenk said, are prepared to acquire the dealership businesses and their real estate, providing a nice opportunity for owners to cash out of the business completely.
It’s easy for interested dealers to participate, Shenk says. “There are no listing frees, marketing fees, selling fees or other requirements or constraints placed on potential sellers,” he told me, “other than the standard confidentiality and non-disclosure agreements at the time of discussions.”
While the buyers will look at individual dealerships and groups, Shenk said they are limiting their purchases to businesses that have at least one of these franchises: Harley-Davidson, Honda, Yamaha, Kawasaki, and Suzuki. Dealerships can carry other franchises, but they most have one of these five major lines to be considered, Shenk emphasized. (more…)