Fall 2014 issue of Horizons

TRANSPORTATION & DEALERSHIPS

Transitioning Your Auto Dealership or Transportation Company by John Butler, CPA

T he majority of dealerships and transportation businesses are owned and operated by individuals or families that run their businesses so lean that they do not have back up.

As a result, almost every individual in the business is a key employee. The speed and complexity of change in today’s business environment makes it imperative for every business to have a succession plan to ensure its survival. Large publicly traded companies typically have highly developed plans and processes to maintain their momentum, so when there is a change in leadership they can continue operating for a significant period of time without significant damage to the business. Unfortunately, this is not often the case for most dealerships and transportation companies. The absence of a key employee can wipe out a company in less than a month. For that reason, it is even more critical that they have a succession plan.

page 58 | horizons Fall 2014