When it comes to buying or leasing land connected to a dealership, I have seen just about everything that can go wrong, from an airplane crashing into a building shortly after my client signed the lease to landlords filing bankruptcy during the term of a lease to a seller dying in the middle of a deal. How do you protect yourself from losing your lease or losing your deal when the unexpected happens?
In each of the cases mentioned above, my client could have lost a lot, but none of them
Auto dealers are the ultimate negotiators, but what applies in negotiating for the sale of a car may or may not hold true when negotiating a buy/sell. Here are some tips to help you get the most out of negotiating a buy/sell:
First and foremost, before even going into a negotiation, do your homework.
Make sure you know the standard multiples for the make or makes you want to buy or sell, the seller’s net profit – which starts with the financial statement but also requires evaluation of things that may not
How often have you received a new Dealer Agreement in the mail, skimmed it, signed it, and returned it to the manufacturer without knowing if it contains any new provisions? If you do this, you are not alone. Often, the changes are insignificant. However, occasionally there will be one that is a game changer. If you are not paying attention, you may live to regret it.
Laws vary from state to state, but most states have laws that protect dealers from being strong-armed into agreeing to new provisions that are not
It can be challenging to keep up with all the laws that affect auto dealerships. There are times, however, when even complying with all the laws isn’t enough to protect you from potential liability.
That is especially true in the area of environmental liability. Dealerships are awash with potential environmental issues because of the many hazardous materials used in the business of selling and repairing vehicles. From broken hoists — which typically leak — to cracked or malfunctioning clarifiers, to abandoned underground gasoline tanks, all can expose a dealer to potential
How would you feel if you entered into a buy/sell agreement and the manufacturer exercised its right of first refusal? A growing number of buyers and sellers are learning the answer to that question.
Although manufacturer-dealer sales and service agreements routinely include some form of a right of first refusal, it used to be rare to see one exercised. Now, however, a growing number of manufacturers are taking advantage of their right to snatch a dealership from the intended buyer and assign it to a buyer of their choice. If you
What Makes a Letter of Intent a Binding Agreement to Buy and Sell? There are two concepts in the law that can turn an unenforceable agreement to agree into a binding agreement. The first concept is called “reliance.” The law of reliance basically states that if you make a promise to someone, even if they do not give you anything in return for the promise, and they tell you they are going to rely on your promise, and as a result are damaged when you do not keep your promise,