Councilor, Buchanan & Mitchell (CBM), a mid-sized accounting and advisory firm that serves clients throughout the Mid-Atlantic region, released the results of a nationwide succession planning survey of auto dealer representatives conducted in collaboration with the National Alliance of Auto Dealer Advisors (NAADA) and NAADA’s member firms. Results from the survey reveal that succession planning remains a challenge for auto dealerships. Nearly 1/3 of the dealerships surveyed indicate they do not have a succession plan in place.
More than 285 dealership owners nationwide are represented in this study and nearly 80% of the respondents were owners.
The survey findings reveal that auto dealers are still struggling with succession planning, the number one inhibitor being timing and the current owner’s willingness to step back.
Faced with unique challenges, dealers are pushing off succession planning by more than 5 years. While nearly 50% of the dealerships surveyed recognize that succession planning is important they also admit they haven’t dealt with it yet. For those that have a plan in place, 79% are looking at internal transition.
“Different from other studies you may find in the market, this succession planning survey focused on the state of mind of the owners responding, rather than some of the hard metrics on the number of retiring dealership owners,” said John R. Comunale, senior vice president and director of CBM’s automotive industry dealer services.
The full findings will be released in the coming months as part of a succession planning series. The articles will offer solutions to the challenges disclosed in the survey. Contact us for more information.
For more information about success planning for auto dealers, please contact John Comunale or Keith Laudenberger via our online contact form.
Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.