DesRosiers - CADA 2017 - Canadian Automobile Dealers Association - Year in Review - 92

Trendsetter Survey Series
On a scale of 1 to 5, where 1 was not a problem and 5 was a serious problem, a vast majority (80.0%) of respondents reported that finding a buyer was not a
problem whereas 8.7% overall indicated that finding a buyer would be a moderate issue. 41.7% responded that acceptance of the new owner by their OEMs are
the least of their concern with 24.3% expressing potential concern for this issue.
Similar to acceptance of the new owner, an unacceptable selling price/multiple was not seen as a problem for 40.9% of respondents, but 23.5% viewed it as
a potential concern. The same trend is also observed for the current sales/market outlook as 42.6% viewed it as not a problem whereas 23.5% viewed it as a
potential problem and 20.0% reported it as a moderate concern. Finding new management to replace existing management was deemed an issue as 44.3% of
respondents noted it as a problem, followed by 21.7% of respondents which reported it was a potential problem.
Looking at sizes of dealerships, 62.5% of smaller dealerships (1-250 units) viewed an unacceptable selling price/multiple to be the least of their worries
whereas 25.0% feel it is a moderate concern (3 out of 5). Finding a buyer for the smaller dealerships (12.5%) was noted to be a more serious problem (5 out of 5)
than larger dealers, 8.0% for dealers with 251-500 units, 2.0% for 501-1,000 units and 2.5% for 1,000+ units.

If your dealership were to changes hands, who do you believe is the ideal person to take...
the ideal person to take over the dealership
Region

A USA / International Buyer
Current partner not a relative
Key employee
Spouse of the owner
One or all of the owner's children/relatives
Privately owned local competitor
Privately owned non-local competitor
Publicly owned non-local competitor

Overall
2.6%
11.3%
16.5%
0.9%
57.4%
4.3%
6.1%
0.9%
100.0%

BC
0.0%
10.0%
20.0%
0.0%
50.0%
10.0%
10.0%
0.0%
100.0%

AB
5.9%
17.6%
17.6%
0.0%
47.1%
0.0%
5.9%
5.9%
100.0%

Man/Sas
0.0%
11.1%
0.0%
0.0%
77.8%
0.0%
11.1%
0.0%
100.0%

New and Used Sales Total
ON
4.2%
8.3%
16.7%
0.0%
66.7%
4.2%
0.0%
0.0%
100.0%

QC
2.4%
7.1%
16.7%
2.4%
59.5%
4.8%
7.1%
0.0%
100.0%

Atl.
0.0%
23.1%
23.1%
0.0%
38.5%
7.7%
7.7%
0.0%
100.0%

1-250
0.0%
0.0%
37.5%
0.0%
37.5%
0.0%
25.0%
0.0%
100.0%

251-500 501-1,000
1,000+
4.0%
0.0%
5.0%
24.0%
12.2%
5.0%
12.0%
14.3% 15.0%
4.0%
0.0%
0.0%
36.0%
59.2% 70.0%
8.0%
10.2%
0.0%
12.0%
2.0%
5.0%
0.0%
2.0%
0.0%
100.0%
100.0% 100.0%

likely/most realistically to take over the dealership
Region

Current partner not a relative
Key employee
One or all of the owner's children/relatives
Privately owned local competitor
Privately owned non-local competitor
Publicly owned local competitor
Publicly owned non-local competitor

Overall
13.0%
9.6%
39.1%
5.2%
24.3%
4.3%
4.3%
100.0%

BC
10.0%
0.0%
10.0%
10.0%
50.0%
10.0%
10.0%
100.0%

AB
17.6%
17.6%
35.3%
0.0%
17.6%
5.9%
5.9%
100.0%

Man/Sas
22.2%
0.0%
44.4%
0.0%
22.2%
0.0%
11.1%
100.0%

New and Used Sales Total
ON
8.3%
4.2%
50.0%
4.2%
25.0%
4.2%
4.2%
100.0%

QC
11.9%
11.9%
42.9%
7.1%
21.4%
2.4%
2.4%
100.0%

Atl.
15.4%
15.4%
30.8%
7.7%
23.1%
7.7%
0.0%
100.0%

1-250
0.0%
25.0%
62.5%
0.0%
12.5%
0.0%
0.0%
100.0%

251-500 501-1,000
1,000+
24.0%
12.2%
7.5%
8.0%
4.1%
12.5%
24.0%
38.8% 42.5%
8.0%
4.1%
7.5%
32.0%
30.6% 17.5%
4.0%
6.1%
5.0%
0.0%
4.1%
7.5%
100.0%
100.0% 100.0%

A majority (57.4%) of respondents believe that if the dealership were to change hands, the owner's children/relatives would be the most ideal person to take over
the business; this was followed by 16.5% of respondents that believe a key employee would be the ideal person to take over. From a dealership size perspective,
those with larger dealerships (1,000+ units) were more likely (70.0%) to cite the owner's children or relatives as an ideal successor compared to the overall
average (57.4%).
When asked who they thought was the most likely person to take over, 39.1% of respondents stated that the owner's children or relatives would be the most
likely candidate. The runner-up in this scenario was a privately owned non-local competitor according to 24.3% of respondents followed by a current partner that
is not a relative according to 13.0% of respondents.

92

CADA YEAR IN REVIEW



Table of Contents for the Digital Edition of DesRosiers - CADA 2017 - Canadian Automobile Dealers Association - Year in Review

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