Auto Dealer Franchise Acquisitions

Last Updated : April 3, 2024

Franchise acquisitions give business owners the opportunity to run a business under a structure that has already found success in the market. In the competitive market of automobiles, an automotive dealer may benefit from diversifying their franchise. When one franchise acquires another, this decision can eliminate competition in a single market, increasing profits for the acquiring business. An acquisition may also help the struggling franchise survive under new ownership. Mergers and acquisitions of franchises can be an exciting time for all involved. With a knowledgeable legal team on your side to help with drafting business contracts and other legal agreements, acquiring a franchise can be a mutually beneficial experience for both franchises.

Considerations of Auto Dealer Franchise Acquisitions

As with any business decision, there are a number of factors to consider that may affect the success of a merger or acquisition, such as the following:

  • Financial Profile of the Franchise
  • Geography
  • Services Provided
  • Owned vs. Franchise

There are several legal and business decisions to make when choosing to acquire or merge with an existing business. By working with an established and experienced team of auto dealer attorneys, you may be better equipped to construct an acquisition that benefits your business.

Contact an Auto Dealer Lawyer in Iowa

The due diligence phase of a merger or acquisition is required to ensure the agreement is viable to both parties. An experienced business attorney can benefit your business throughout all elements of the merger and acquisition by ensuring that all of the legal agreements minimize the chances of future conflict or even litigation. Fortunately, James Arenson of Arenson Law Group, PC has 22 years’ of experience as a vehicle dealership franchise owner to utilize when counseling his clients.