Should you add — or swap — a brand?
Abstract: Economic conditions, levels of competition, brand images and market demographics change over time. So it’s smart business to periodically review brand offerings to determine whether it’s time to add a franchise or swap a mismatched brand with another dealership. A change in brand might more effectively leverage product mix and maximize return on investment. This article explains how to spot opportunities, work with manufacturers, state boards and lenders, and carry out a swap transaction. A sidebar discusses the accounting aspects of a business combination.