Today, we’re tackling the subject of succession planning — a topic where you might be tempted to say, ‘I’ll worry about that next year or in 5 years…’ However, not having a plan in place could be devastating for your family, your employees and a fatal mistake for your dealership.
Rex Collins, a principle at HBK CPAs & Consultants, shares what he’s seen over and over again when working with dealers:
There are a number of reasons that dealers resist succession planning, lots of reasons. Oftentimes it’s fear, fear of death, fear of family confrontations, sometimes the dealer’s spouse has an idea of which siblings they want to have involved or they want everyone treated – all of the siblings treated the same, where the dealer principal may know that one or two of the siblings is stronger than the others and needs to be in charge. There’s also costs, there’s a lack of identifiable successor, there’s a lot of things that need to be considered.
Collins also say that despite an aging dealer body, only about 25% of all U.S. dealers have a succession plan in place at all. Listen in to our discussion as Collins will lead us through some real-life examples that may offer ideas for you.
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