FAQs
Frequently Asked Questions
Take advantage of these frequently asked questions to better understand your needs and how GW Marketing Services applies its 42 years of experience to be your broker and consultant of choice.
FAQ Topics:
BROKERAGE
Why should I use a broker?
A highly experienced broker uses years of experience to anticipate and address challenges, putting you in a more stable negotiating position. A qualified broker understands the challenges of the automotive brokerage business and has the intrinsic knowledge needed to assign an accurate, market-sensitive value to a franchise and a realistic timetable.
How do I find the right broker?
Consider a broker who is a reliable expert and understand dynamics of your region – someone who will use local registration figures, business management reports, group composites, and other relevant materials – who will prepare a Market Book, and then access an extensive viable prospect list to maximize your market and profit potential.
When is the right time to sell or buy a dealership?
An experienced, knowledgeable broker feels the pulse on the market and can determine when a sale or purchase makes the most sense for you. The experienced broker will be able to analyze the relevant market and financial data and realistically present a strategic plan and a value opinion with a keen eye toward local market representation trends to determine what option would make the most sense for you. This broker would look at local and regional market trends, manufacturer influence, and your financial position. Today it is extremely critical that you understand your market representation position ASAP in order to make the right decision.
What do I do if I want to sell or buy a dealership?
After finding the right broker (see above), your broker should ask for an inclusive checklist of financial and market data from you if you want to sell (or from the Seller if you are contemplating a purchase) in order for the broker to be most effective. The broker will ask that you sign a listing contract or a confidentiality/buyers agreement including personal history and financial data, as the case may be.
For what price should I list my dealership?
Your broker will recommend a price based on dealership assets such as Furniture, Fixtures, and Equipment (FF&E), parts, supplies, and tools, and will also supply the blue sky value of your franchise based on the analysis of financial and market data relevant to your dealership. The broker will use extensive market experience and a thorough knowledge of current Brand valuation levels to determine your asking price.
What do I do to prepare my dealership to be sold?
An experienced broker understands the sensitivity of selling your dealership. Based on vast experience over decades of brokering dealership businesses, the broker will recommend the best facility and operational improvements to create the most positive image. The broker will focus your time, energy, and resources on the most important steps needed to facilitate the quickest deal for the most money.
Why would I use a broker to negotiate a buy-out by an OEM?
Each OEM has an extensive list of requirements about which a qualified broker in most aware. The broker’s decades-long experience and current knowledge of market representation policies allows that broker to get the most blue sky from the OEM by finding the leverage needed to extract the highest Brand value for the OEM. This maneuvering includes using vast knowledge of the existing representation and how to leverage that into the best deal regarding buy-out programs/terminations forced relocations, dualling, or “add point” issues. You need an expert to help you through the maze of factory policies!
APPRAISALS
Why should I have my dealership(s) appraised?
In this very dynamic industry, it is critical to stay on top of Brand value. The appraiser understands the use of the most relevant market and financial data to develop the valuation opinion. Appraisals are often used for partnership and family disputes, divorces, estate planning, municipality challenges, and manufacturer disputes.
How do I find the right dealership business appraiser?
Consider finding an automotive dealership valuation expert who understands the Region and the locale in which your dealership is located. That broker will perform detailed local, Regional, and National market research using R. L. Polk registrations, cross-sell reports, and other relevant market materials, as well as dealership financials, business management financial trend reports, and group composites to reach a valid value opinion. An absolute must is that the most qualified appraiser will testify in deposition and court by providing “expert witness” testimony services without hesitation, if or when such service is needed.
Are appraisals needed in order to develop an exit strategy?
Yes. In order to understand all the options available to you to best exit your business in a manner that suits you best for the right remuneration, that process starts with the dealership appraisal. After obtaining the value, the best exit method can be determined.
How does the appraisal help me when I decide to sell or buy a dealership(s)?
When the expert automobile dealership appraiser determines the value, you then have the most valuable tool in the sale or purchase process, not the least of which is sale price credibility.
What value does the appraisal have in the estate planning process?
When the expert automobile dealership appraiser determines the value, you then have the first and most valuable tool in the estate planning process. The expert appraiser must produce work that has been accepted by the IRS for estate planning purposes and the appraiser must be will to testify as an “expert witness”.
What purpose does the appraisal serve for family, divorce, or partnership disputes?
These are usually very highly charged disputes. The expert appraiser will produce a professional, efficacious document. He will have the credibility to keep the negotiations in proper focus because of the extensive experience handling these matters and by offering instructive, professional, sensitive, and objective insights from a third party position to best complete successful settlements.
How is the appraisal used in dealing with complicated OEM market consolidation issues?
Many OEM market representation challenges require that a dealer be aware of the dealership value before and after the application of the OEM’s policies. In the appraisal process, the expert appraiser will include an opinion of the effect of the OEM market strategy on the local market because that impacts the dealership value. If the policy seems to promote a positive direction but carries certain onerous responsibilities, you need to know if implementing that OEM plan will enhance your value through greater profitability. Unfortunately today many OEM market plans are not intrinsically positive from your standpoint and do lead to litigation. That litigation requires an appraisal that will project the lost value (damages) incurred by the installation of the OEM’s market strategy. The appraiser must be prepared to back up the damages opinion by offering “expert witness” services. Make sure you have the right tools in your corner!
When is an appraisal necessary for municipality challenges (land-takings)?
Many municipality challenges require that a dealer be aware of the dealership value before and after the application of the municipality’s land-taking, land-swapping, or other plan. In the appraisal process, the expert appraiser will include an opinion of the impact of the municipality strategy on the dealership value. If the policy seems to promote an increase in value but carries certain onerous requirements, you need to know if implementing that plan will enhance your value through greater profitability. Unfortunately many municipality plans are not intrinsically beneficial and do lead to litigation. That litigation requires an appraisal that will project the lost value (damages) incurred by the installation of the municipality plan. The appraiser must be prepared to back up the damages opinion by offering “expert witness” services. Make sure you have the right tools in your corner!
MARKET CONSOLIDATION SOLUTIONS
What defines the currently very popular, relevant terminology: “market consolidation”?
In order that a Domestic OEM’s dealer body be profitable, there is much focus on consolidation – be it Chrysler’s Alpha/Genesis Program, Ford’s market consolidation program, or GM’s ever-evolving channeling policies. This consolidation vastly increases the surviving dealer’s primary market areas by termination. As an important side note, Import dealers must be wary as well as those OEMs are imposing what are in many cases unrealistic and inflexible relocation or facility requirements. You must control that OEM policy installation before it controls you!
How do I deal with the OEM’s imposing market consolidation and unrealistic facility and relocation policies?
Look to a third-party expert who has decades of experience and the most current knowledge of OEM policy that allows that expert to have a deep understanding of marketplace dynamics. That expert will develop a market consolidation, relocation, and facilities improvement solution for you, with consideration for your financial position and local market conditions. Most of the time a business appraisal is necessary to comprehend the importance of the right decision.
How do I develop an effective market consolidation solution in order to determine whether I should consider selling or buying a dealership when the OEM(s) attempts to apply its consolidation policy in my market?
The OEM market representation challenges require that a dealer be aware of the dealership value before and after the application of the OEM’s policies. First, you must find an expert appraiser who will include an opinion of the affect of the OEM market strategy on the local market because that impacts the dealership value. If the policy seems to promote a positive direction but carries certain onerous responsibilities, you need to know if implementing that OEM plan will enhance your value through greater profitability. The answer determines your decision to sell the dealership or to buy/dual another in your market. Unfortunately today many OEM market plans are not intrinsically positive from your standpoint and do lead to litigation. Litigation requires an appraisal that will project the lost value (damages) incurred by the installation of the OEM’s market strategy. The appraiser must be prepared to back up the damages opinion by offering “expert witness” services. Make sure you have the right tools in your corner! That appraisal and the local market dynamics determine if you should sell your dealership. Because the issues are complicated you need to listen to an expert in order to make a timely decision. To stay the same today is to go backwards. Lost opportunity could mean the demise of your business.
Can a qualified dealership business consultant enhance the Blue Sky I should receive from the OEM or another buyer?
By implementing certain market driven strategies, creating leverage, and with excellent negotiation skills, an expert will potentially double the Blue Sky value you had thought was possible!
LITIGATION SERVICES
What purpose does a qualified automobile dealership litigation consultant serve and will the expert be able to help me avoid a trial?
If you are faced with partnership or family disputes, estate planning issues, divorce negotiations, market representation challenges, or manufacturer policy changes, an expert consultant with decades of experience will insure that you understand the issues and the solutions. That expert can also avoid a complicated trial by having the negotiation skills developed from years of experience to mediate the best solution. The mere fact that an expert witness is appointed to a case has frequently prompted the opposition to seek out-of-court resolution!
How do I find the right automobile dealership litigation consultant who will testify in court or at depositions, offering “expert witness” services if or when needed?
Consider contacting the State Associations and dealers in your area who have been involved in OEM or dealership acquisitions or sales. Then look for a consultant with measurable experience in automobile Industry contract litigation. An absolute must is that when you hire the most qualified consultant, that person must be a qualified dealership business appraiser and one who is willing to testify in deposition and court by providing “expert witness” testimony services without hesitation, if or when such service is needed.
In what way will the litigation consultant assist me if I am involved in litigation because of a failed purchase & sale transaction or partnership, family ownership disputes, or divorce negotiations?
The expert consultant with decades of experience will insure that you understand the issues and the solutions. That expert can also avoid a complicated trial by having the negotiation skills developed from years of experience to mediate the best solution. The mere fact that an expert witness is appointed to a case has frequently prompted the opposition to seek out-of-court resolution!
What can a litigation consultant offer if I need to become involved in an OEM market consolidation, facility, or relocation policy dispute?
A litigation consultant who has decades of experience and the most current knowledge of OEM policy has a deep understanding of marketplace dynamics. That expert will develop a market consolidation, relocation, and facilities improvement solution for you, with consideration for your financial position and local market conditions. Most of the time a business appraisal is necessary to comprehend the importance of the right decision.
How will the litigation consultant assist me if I am involved in a dispute with the IRS regarding a dealership business valuation performed for estate planning purposes?
When the expert automobile dealership appraiser determines the value, you then have the first and most important tool in the estate planning process. The efficacy of the appraisal is measured by how well it is completed. The expert appraiser will be one who has produced many appraisals accepted by the IRS for estate planning purposes. Importantly, it is a must that the appraiser is willing to testify as an “expert witness”.
What if I am involved in litigation because of a municipality “eminent domain” valuation and monetary damages dispute?
The implementation of most municipality plans are not intrinsically beneficial and do lead to litigation. Many municipality challenges require that a dealer be aware of the dealership value before and after the application of the municipality’s land-taking, land-swapping, or other plan. The first step is to hire a qualified automobile dealership appraiser, one who will include an opinion of the impact of the municipality strategy on the dealership value – a “Damage Model”. The litigation always requires an appraisal, which projects the lost value (damages) incurred by the installation of the municipality plan. You must require that the appraiser be prepared to reinforce the damages opinion by offering “expert witness” services.
CONSULTING SERVICES
Having been able to review the FAQs for the brokerage, appraisals, market consolidation solutions, and litigation services, why would I need other Consulting Services?
This service is available if you need assistance when the sales or purchase process has already begun or if you are in the midst of negotiating a divorce, partnership, or family ownership dispute. You may need guidance in crafting any one of several ownership buyout scenarios or in negotiating with the IRS regarding dealership business valuation issues. You will need the help of an expert automobile dealership consultant if you are contesting unfair OEM market representation, facilities upgrade, relocation plan, or a franchise termination. In all cases an expert automobile consultant will help you navigate through the maze of options available to you.
What can a qualified automobile dealership business consultant do for me when I am already involved in a purchase & sale transaction either as a seller or a buyer and need assistance?
An experienced, knowledgeable consultant/broker feels the pulse on the market and can determine if the sale or purchase makes the most sense for you. The experienced broker will be able to analyze the relevant market and financial data and realistically present a strategic plan and a value opinion with a keen eye toward local market representation trends to determine if selling or buying is really the path for you. This broker would look at local and regional market trends, manufacturer influence, and your financial position. Today it is extremely critical that you understand your market representation position ASAP in order to make the right decisions. Once the expert has determined what you should sell the dealership for or the value of your purchase target, the expert will negotiate the best deal for you. Importantly, the expert consultant knows the OEM approval process and will greatly assist you in navigating the maze of documents in order to expedite the approval process.
What would a qualified consultant advise me regarding buy-outs by management, family, employees or other outside qualified prospects who do not have enough money to purchase a dealership outright?
The experienced consultant has critical knowledge of the many buy-out scenarios. Each OEM has an extensive list of requirements about which a qualified consultant in most aware. The expert consultant/broker with decades-long experience and current knowledge of market representation policies knows how to find the key to formulating the right buy-out plan that will suit both the seller and the buyer to insure that the plan is successful. You need an expert to help you through the negotiation and approval maze.
How can a qualified consultant help me if I am already or about to be involved in an OEM market consolidation negotiation?
Today it is extremely critical that you understand your market representation position ASAP in order to make the right decisions on a timely basis. The experienced consultant/broker will be able to analyze the relevant market and financial data and realistically present a strategic plan and a value opinion with a keen eye toward local market representation trends to determine if selling or buying is really the path for you. On the basis of having been able to make the decision to sell or buy, the consultant will assist you in negotiating the deal with the OEM. The broker’s experience and current knowledge of market representation policies allows that broker to find the key to getting the most blue sky from the OEM by finding the leverage needed to extract the highest Brand value for the OEM. This maneuvering includes using vast knowledge of the existing representation and how to leverage that into the best deal regarding buy-out programs/terminations forced relocations, dualling, or “add point” issues. You need an expert to help you through the maze of factory policies!
How can a qualified consultant assist me in completing divorce, partnership, or family ownership negotiations and/or effectively handle litigation already in process?
The expert consultant with decades of experience will insure that you focus on the relevant issues and the most effective solutions. That expert can also avoid complicated trial by having the negotiation skills developed from years of experience to mediate the best solution. The mere fact that you employ an expert has frequently prompted the opposition to seek a quicker (out-of-court) resolution! The qualified consultant would stand ready to testify in court as an “expert witness” which offers you the confidence that the expert will be there right until the final settlement.
How does a qualified consultant help me develop strategies to successfully anticipate and effectively confront major market shifts brought about by changes in the economy, socio-economic and demographic profiles of my market, and Brand appeal?
Today it is extremely critical that you understand your market representation position ASAP in order to make the right decisions on a timely basis. The experienced, knowledgeable, consultant will be able to analyze the relevant market and financial data and realistically present a strategic market survey and a plan with a keen eye toward local market representation trends to determine if selling or buying is really the path for you.
