H E A T S T R E S S BY BRIAN DUPLESSIS LOSS PREVENTION SUPERVISOR, NHADA High temperatures and humidity are finally here. NHADA reminds members it’s important to take steps to prevent heatrelated illness, which can be very serious and even deadly. Members are also reminded that the Occupational Safety and Health Administration (OSHA) currently has a heat stress emphasis program, meaning they will visit any workplace upon receiving a complaint. Some of the best practices recommended include: • Employee awareness • Proper hydration • Air circulators • Frequent breaks in air-conditioned areas • Lightweight clothing (shorts) • Cooling wearables It’s also important to monitor employees and take prompt action if you recognize the symptoms of a heat-related illness, which can include: • Cool, moist skin with goose bumps when in the heat • Heavy sweating • Faintness • Dizziness • Fatigue • Weak, rapid pulse • Low blood pressure upon standing • Muscle cramps • Nausea • Headache Lastly, we are asking members to be extra vigilant early in the summer season as employees haven’t been acclimated to the high heat. Acclimation is one of the risk factors. For more information and assistance with heat injury prevention resources, contact your NHADA loss prevention rep or Brian Duplessis at bduplessis@nhada.com. the prior dealer. If that is the case, then look carefully at what the current management team is doing or not doing. Are they the cause of poor performance, or are there other factors? • Earnings Capacity — Normalize the target dealerships earnings by increasing or reducing expenses you expect will not apply to your new company. For example, if rent is not fair market rent, then add back or subtract an amount that will normalize rent to the fair market. If the current dealer employs family members who will not be needed at their current salary, then add back or subtract an amount that will normalize their salary. If the current dealer packs his or her extended service contracts and pays that money to a management company, then add that pack back to net income to determine normalized net income. This type of analysis will help you determine what you think you can do with this opportunity. An underperforming dealer in a high-traffic market may present more of an upside than the same type of dealer in a lowertraffic market. It’s important to work with qualified professionals when analyzing an opportunity. They should assist you with formulating a reasonable projection of earnings when targeting a dealership to acquire. Once you understand your opportunity, you can start putting together your offer. Please let anyone on our dealership services team know how we can help. To learn more or contact our team, scan the QR code. https://arbcpa.com/auto-dealership/ 24
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