Beach Automotive’s Post

#BeachAutomotiveBlog In this blog post, we’ll explore the considerations that come into play when deciding between selling privately and trading in at the dealership. Details here: https://ow.ly/vtbK50QPp7u

Discover the most common reasons #auto retail deals fall through and how to prevent them. From misaligned expectations to financing issues, our industry specialists break down the key factors that can make or break your deal. Don’t let these mistakes cost you your business. #SellingYourBusiness https://direc.to/k1Z6

The retail automotive industry currently shows strong M&A activities and associated challenges, whether Dealers are looking to purchase and grow or putting in place an exit strategy. Discover the most common reasons #auto retail deals fall through and how to prevent them. From misaligned expectations to financing issues, our industry specialists break down the key factors that can make or break your deal. Don’t let these mistakes cost you your business. #SellingYourBusiness https://direc.to/k1Z6

Did you know that Vanguard Dealer Services has their own magazine called the Vanguard Dealership Profitability Catalog? Inside you’ll find articles written by our team of professionals providing insight into trends within the industry and strategies on dealership profitability. If you’d like a complimentary copy for your dealership, drop a comment below! You can also request by emailing: [email protected] #VanguardDealerServices #AutomotiveTrends #AutoDealers

Vanguard Dealer Services has their own magazine called the Vanguard Dealership Profitability Catalog! It’s where you can find articles written by our team of professionals providing insight into trends within the industry and strategies on dealership profitability. If you’d like a complimentary copy for your dealership, drop a comment below! You can also request by emailing: [email protected] #VanguardDealerServices #AutomotiveTrends #AutoDealers

Valuing dealerships is complicated as buyers weigh many factors when determining how much they will pay. As we all know, the dealership buy-sell market has changed significantly. Therefore, whether you are considering a sale, wondering if you can divest stores to place the capital into growth in other areas, or want to weigh your options, it has never been more critical for dealership owners to know what their business might be worth. Published in 2023, the questions answered in this Automotive News Buy-Sell Expert Q&A still ring true. https://lnkd.in/eYzpBkz7

It’s important to engage an advisor. Selling direct doesn’t yield the best results. Delayed time in market, loss of confidentiality, not maximizing the offer process, distractions to owners and leadership, and failed deals all result in lower value. Especially in a declining profit cycle. Call me for a confidential discussion if you’re considering buying or selling. Always happy to connect.

How would you address the gap left by GAP in your dealership? Let us know your strategies and insights.

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Attached is the first half of our most recent article on the Top 10 things dealers should be focussed on in 2024 . 2024 will be a challenging year , a lot more like 2019 than 2023 and a time when dealers will really need to start to implement their strategic plan for 2030 . Over the last 4 years , the status quo was actually rewarded , so their was no imperative to create value necessarily. In 2024 value will be either created or destroyed, the status quo simply won’t exist , operating in the context of the last 4 years will only destroy value , so if value is important, making change to navigate the market ahead will be critical or getting out with some value intact will be an imperative . The belly of the beast isn’t full yet , so strategic acquisitions of key dealerships in key locations will still attract strong values as the longer term players jockey for position , but those dealerships that offer little strategic value will struggle to sell . In 2024 the large groups that “ have arrived “ will be focussed on long term cost reductions , in the future the key to profitability is not by increasing transactional gross , but by reducing transactional costs . If the average dealers spends 12% of total gross running their business , the push will be on reducing this to 11, then 10 , then 9% . The goal will be institutionalising profit to turnover . This is radical expense structure changes ; 1) offshoring all non customer facing roles 2) technology replacing people in service 3) substantially reducing footprints so that only customer facing facilities are on prime real estate 4) pushing customer interactions back to early cycle buyers to eliminate tactical advertising , whether this be leads or media 5) rewarding activities over outcomes to create process DNA driven outcomes rather than people driven outcomes . Once these cost structures are institutionalised , competition by traditional cost structured dealerships will be impossible , leading to greater consolidation. It all starts in earnest this year after a few years off to enjoy the spoils , build the portfolio and build a war chest . This article and the next focusses on some of the strategic imperatives to help in this period of change