Valuation Services

A practical solution to valuing your dealership

Dealerships are a complex and specialized type of business with four or five separate departments, each with a life of their own. We know your industry in depth, and understand the issues you face in your business. We regularly consult with our clients on a variety of issues to help successfully operate their dealerships, or assist in a transition of the business either to an outside party or the next generation.

A rule of thumb multiple is not sufficient for a proper value determination; rather the focus should be expected cash flow. This is consistent with the approach taken by the public automobile and truck retailers, as well as sophisticated buyers and sellers. We have performed valuation assignments for over 500 dealerships nationwide. Valuations have been made for the following settings:

Buy/sell transactions
Estate planning
Succession planning
Purchase price allocation
Financing
Various forms of litigation

In addition, we provide valuation services for transactions in which dealers sell off an individual franchise or their personal goodwill assets. We are also experienced in assisting with new point proposals or other expansion planning.

Case Histories

Provided valuation services in support of the potential formation of a dealership that involved 65 privately- or publicly-owned retailer marketing areas, including unopened points.
Completed a valuation analysis of a $1.5 billion private dealership group with 25 stores in support of an employee stock ownership plan transaction.
Provided valuation services in support of a potential management buy out of a heavy truck dealer operating multiple locations.
Provided valuation services in support of a successful IRS transaction audit in which a personal goodwill asset had been identified without initial supporting documentation.