Automotive Retailers

Automotive dealers have experienced record breaking years since the financial crisis. Low interest rates and increased SAAR were boons for dealership profitability; however, market dynamics are changing. The retail customer base is part of a new generation that demands an easier way of doing things. OEMs have placed tremendous ‘capex’ requirements on dealers, and rising interest rates places serious burdens on auto retail.

Automotive dealers require guidance to assist them with challenges and opportunities on the road ahead. Here are some ways that we’ve helped dealers.

  • Performed a financial viability analysis for a large dealership chain that aimed to provide Uber and Lyft rideshare drivers with rental vehicles on a weekly and monthly basis.
  • Conducted transaction due diligence for a large dealership auto group that was involved in a large buy/sell transaction ($200MM+). Advised the group’s leadership on multiple aspects of the transaction (and negotiations).
  • Led a senior management strategy session with a multi-state operator of large used car stores.
  • Supported the senior management of an auto group in analyzing and planning a digital retail strategy to support incremental and strategic growth.
  • Assisted the dealer principal of a substantial privately-held dealership group in deciding on a brand acquisition and disposal strategy.
  • Prepared certain documentation on behalf of a prospective dealer candidate seeking factory approval (which was granted) with regard to his acquisition of an underperforming luxury franchise store.
  • Analyzed the replicability of a low-margin/high-volume no-haggle ultra-large trading area strategy for a dealership chain.
  • Assisted a large retailer in defending its CSI practices against a fraud claim by an automaker.
  • Authored a manufacturer proposal for a large franchise retailer that sought an open point from a Japan-based automaker.