A Dealer Guide to Dealership Valuation

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BM15_DealershipValuation_2019_150wThis guide aims to help dealers and their advisors understand the process of valuing automobile and heavy-truck dealerships as well as the various factors that influence dealership value. It covers such situations as buy-sell transactions; estate and gift tax planning or reporting; ownership succession planning; owner buy-in or buy-out; tax reporting due to entity restructuring; and litigation settings including divorce and dispute. The guide discusses the importance of analyzing historical earnings and cash flow, estimating future cash flow, and determining a reasonable return on investment. It describes the steps in the appraisal process, outlining the income, market, and asset-based approaches to valuation. It provides numerous examples, formulas, and worksheets. It also addresses special valuation considerations such as discounts for non-controlling interests; valuation of personal versus corporate goodwill (Blue Sky); valuation for key employee ownerships; and valuation for federal tax matters, including the relevance of IRS Revenue Ruling 59-60. It examines changes resulting from the Tax Cuts and Jobs Act of 2017. Finally, the guide suggests strategies to maximize dealership value and prepare for exit.

Tags: BM15, Driven Management Guide, Driven, dealership valuation, buy-sell, estate, gift tax, succession planning, shareholders, standards of value, appraisal organization, cash flow, dealership value. non-operating assets, discounts for non-controlling interests, IRS Revenue Ruling 59-60, Internal Revenue Service, BM15, ATD, commercial truck, heavy-duty truck, tax Issues, valuation, blue sky, #MemberBenefits, #DrivenGuides

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