Senior Managing Director Marc Spizzirri's article "Ask yourself these questions when thinking of acquiring more dealerships" was recently published in Automotive Buy Sell Report. Marc discusses how GlassRatner has been assisting failed dealerships that stretched themselves too thin through acquisitions. He provides 8 questions that he believes dealerships should consider before moving forward with expansion.
See below for an excerpt from the article.
The most prevalent common denominator from each of the case studies that we have worked with this last year is poorly-executed growth. Each dealer was at one time very successful. As such, the temptations to add new dealerships and new locations became hard to resist. The decision-making process is driven by the basic tenets of greed and ego. If one dealership is good, two must be better, three great and so on.
It is common to make our decisions based on prior experiences and judgments. Combine this with a successful track record of logical and emotional business instincts that have proved reliable in the past, and we have the foundation for decision making.
To read the full article, please click here.