Auto Dealership Mergers & Acquisitions Attorneys

Yes. Most franchise agreements require manufacturer approval before a dealership can be sold or transferred. OEMs may also exercise a Right of First Refusal (ROFR), which allows them to purchase the store on the same terms and conditions. Every transaction should be structured with manufacturer approval in mind from the start.

Common problems include misvaluing goodwill or inventory, overlooking original equipment manufacturers' approval requirements, and mishandling manufacturer facility demands. These issues can delay or derail a deal if not appropriately managed. Experienced legal guidance helps avoid costly mistakes and keeps the transaction on track.

The property is often a significant component of a dealership deal. If the real estate is owned, a separate purchase agreement or lease must be negotiated. For leased properties, terms such as site control, rent, and renewal options are critical to the dealership’s long-term viability.

Disputes can arise even after a transaction is finalized, such as disagreements over financial adjustments, representations, or manufacturer requirements. When that occurs, dealerships benefit from counsel experienced in both transactions and litigation to resolve issues quickly and protect ongoing operations.