Saturday, July 6, 2013
Robert L. Moshman (Attorney, New York and New Jersey) recently published an article entitled, Successful Exiting for Auto Dealers, The Estate Analyst (June 2013). Although this article is about successful exit planning and estate planning for owners of automobile dealerships, many of the techniques discussed here apply to many business owners. Provided below is the introduction to his article:
There are great planning possibilities for owners of automobile dealerships to maintain control, protect assets from creditors, select domiciles, employ trusts, provide advanced succession planning, and engage in serious opportunity shifting.
Unfortunately, the stereotypical dealership owner will ignore almost all of this advice and do some last-minute planning instead. Sadly, this will not be sufficient and will shortchange the heirs, the employees, and the legacy of such owners.
However, the coming years will provide a golden opportunity for better planning. And there is a strong third-party marketplace to purchase dealerships in an industry that is rapidly consolidating.
Here, we look at the historical context of the automobile dealership, the applicable planning techniques that can be employed, and the important exit strategies that modern dealership owners can consider.