Article on Exit Planning for Auto Dealers

Robert L. Moshman (Attorney, New York and New Jersey) recentlypublished an article entitled, SuccessfulExiting for Auto Dealers, The Estate Analyst (June 2013).  Although this article is about successfulexit planning and estate planning for owners of automobile dealerships, many ofthe techniques discussed here apply to many business owners.  Provided below is the introduction to hisarticle:

There are great planningpossibilities for owners of automobile dealerships to maintain control, protectassets from creditors, select domiciles, employ trusts, provide advancedsuccession planning, and engage in serious opportunity shifting.

Unfortunately, the stereotypicaldealership owner will ignore almost all of this advice and do some last-minuteplanning instead. Sadly, this will not be sufficient and will shortchange theheirs, the employees, and the legacy of such owners.

However, the coming years willprovide a golden opportunity for better planning. And there is a strongthird-party marketplace to purchase dealerships in an industry that is rapidlyconsolidating.

Here, we look at the historicalcontext of the automobile dealership, the applicable planning techniques thatcan be employed, and the important exit strategies that modern dealershipowners can consider.