Aliens Continue to Plague New England

Several foreign (say, Alien!) brokers are invading New England! Talk about disruptors. 

GW Marketing Services has been in business for 42 years. We’ve sold hundreds of stores and performed hundreds of valuations. With dealership transactions, we have seen it all: OEM total interference using ROFR processes, deals going from 20 to 90+ pages, and complex market representation issues. These issues are more complex here in New England versus the rest of the US. New England states have stringent franchise statutes in a very “over-dealered” marketplace, not to mention the OEM push to terminate dealers.

I was born into the auto dealer world as the son of a dealer principal. I had a very informative 12+ year career with an OEM while being responsible for 300 branded dealerships in New England. I started GW Marketing Services to help dealers get the best deal possible after seeing too many get taken advantage of. These were people and businesses I grew up knowing.

In 1980, our first year in business, there was no such thing as a dealership broker in New England, and there were very few in the New York Tri-State area. We were the only broker in business for almost two decades. By 1983, I had developed an auto-industry-specific appraisal technique that has been used industry-wide for decades to produce the most accurate valuations possible. As time went by this model has spread nationwide.

The point is, no one knows the New England market like we do. New England dealers sell to other New England dealers 95 percent of the time, and it’s usually one within a 20 -30 mile radius. Why would a New England dealer looking to sell his business enter an exclusive 4-to-6-month listing contact with an “alien” broker from outside New England? Brokers from the Midwest, Southwest, or, of all places, the west coast don’t know the buyers (or Sellers) like I do. We maintain an active database of all the dealers in New England (and nearby areas of New York and New Jersey), along with thousands of other qualified candidates in our system.

Recently we hear that selling dealers are being referred to brokers through one of their “aftersell” agents or other vendors. It makes sense. You develop relationships with your reps. They help make your dealership more successful, and you build a trusting rapport with them. Of course these reps make other friends in the industry too -- including brokers. So you mention to them, “Hey I think I want to sell this store. Do you know anyone who could help?” They refer you to their buddies (and likely get a kickback for it) instead of referring you to someone who can actually successfully sell your dealership. These “agents” then call their dealer clients without qualifying them.

They contact their broker “buddies” (alien brokers) who shop your store to every other area dealer, whether they’re qualified buyers or not. How would they know who’s qualified? They don’t have our 42+ years of experience here to qualify potential candidates. They make dozens of random phone calls, mostly from an office in another region of the US! Word gets out on the street that you’re selling, resulting in employees and managers running scared, damaging your business and its value.

Notably these alien brokers say they have large dealer groups looking to break into the New England market. They make big promises, requiring long-term, exclusive contracts, and promising you more Blue Sky than anyone ever has before. 

We’re in the least consolidated market in America. A whopping 70 percent of our region is still family-owned businesses who own 1-3 branded dealerships. Let’s be honest. Large dealer groups do not buy modest-sized stores. They’re looking to buy other big groups (platforms) of high-volume stores which will pump out thousands of new and used vehicles annually. So, nothing happens. You’re stuck waiting in the dark for a magical deal that never comes. Alien brokers collect listings like fruit in a basket, but they’re lucky to close one or two deals in New England each year. Are you feeling lucky? Think you could be the one?

New England dealers can’t be treated the same way as the rest of the country. You need someone local who knows the market and has personal relationships with hundreds of dealers in the Northeast. We are the firm who can get you the Blue Sky that your store is worth. We are the firm with hundreds of local contacts. We hear all the rumors and innuendos about who is looking to buy (or sell). We keep the sale and transaction discreet, so your entire management team doesn’t jump ship.

Not all brokers are created equal. Some brokers do not stay 100% devoted to their clients, especially when the deal process becomes challenging. We stay close to our sellers throughout the whole sales process, especially as we approach the closing date. We have brokered more stores in New England than any other broker. We have the most loyal client base and the best reputation in the market.  

When you’re ready to sell your dealership, contact me, Gordon Wisbach, at gordon@gwmarketingservices.com or 508-395-2500 (personal cell).