It looks like there’s new money coming into the market with an eye to rolling dealerships into operating groups. Many of those involved have powersports experience.
Long-time industry pro Bill Shenk is the point man for the three groups. His PowerHouse Dealer Services company has been retained to find and evaluate acquisition opportunities for these buyers.
It’s easy for interested dealers to participate, Shenk says. “There are no listing fees, marketing fees, selling fees or other requirements or constraints placed on potential sellers, other than the standard confidentiality and non-disclosure agreements at the time of discussions.”
Buyers from the three groups plan to purchase collectively up to 30 metric dealers and 10 Harley-Davidson dealerships in 2009, with more acquisitions planned for 2010, according to Shenk. In 2008, the three groups made more than $100 million in retail powersports business, he said.
The buyers, whom Shenk declined to identify, are prepared to acquire the dealership business and its real estate, providing a nice opportunity for owners to cash out of the business completely, he said.
While the buyers will look at individual dealerships and groups, Shenk said they are limiting their purchases to businesses that have at least one of these franchises: Harley-Davidson, Honda, Yamaha, Kawasaki, and Suzuki. Dealerships can carry other franchises, but they must have one of these five major lines to be considered, Shenk emphasized.
Shenk will be available to discuss opportunities today through Monday at the Dealernews booth in the Convention Center, or by cell at 540-421-9292. Confidential inquiries can be sent to Shenk at email@example.com.
– Submitted by Joe Delmont