2025 TIME Dealer of the Year Nominee Issue 2 • 2024 SMART Roger Jr.
Administrative Offices: 10543 South Glenstone Place, Baton Rouge, LA 70810 • (800) 622-6838 • TheVersantGroup.com AADA'S ENDORSED F&I PROVIDER OF PRODUCTS, TRAINING AND INCOME DEVELOPMENT A FEW OF OUR 60+ TEAM MEMBERS: Keith Decell President Jason Rasti Executive Vice President Cole Miller Director of Training Lee Martinez Regional Sales Director Joe Latham Territory Manager Shelley Cavin Client Relations Manager Sunny Mayhall General Counsel
©2025 The Arkansas Automobile Dealers Association (AADA) | The newsLINK Group LLC. All rights reserved. Arkansas Auto Dealer is published four times per year by The newsLINK Group LLC for AADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of AADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Arkansas Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of AADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 4 PRESIDENT’S MESSAGE Promoting Arkansas Dealers By Greg Kirkpatrick, President, AADA 6 2025 TIME Dealer of the Year NomineeRoger Smart Jr. 10 AADA Grassroots Meetings A Huge Success 11 Fall Board of Directors Meeting Recap 12 AADA at the Governor’s Mansion Circle of Friends Christmas Party 14 2024 AADA Christmas Party at the Arkansas Museum of Fine Arts Dec. 5, 2024 16 The Grind We Know as the Car Business By Jason Rasti, Executive Vice-President, The Versant Group 17 SAVE THE DATE! 2025 AADA Convention July 22-25, 2025 18 AADA Supports Hunger Relief with Donation to Arkansas Hunger Relief Alliance 19 Plan Now for a Smooth Business Transition Later Learn Strategies to Avoid 7 Common Pitfalls When Preparing for Dealership Transition By Duncan Moseley, Managing Director in the Center for Family Legacy at Truist, and Stacey Prince-Troutman, Partner and Chair of the Trusts and Estates Practice at Akerman LLP 22 Endorsed Providers 3 Arkansas Auto Dealer
PRESIDENT’S MESSAGE As the 95th General Assembly kicks off, we are reminded that it is more critical than ever to constantly promote the important role Arkansas dealers play in the state’s economy. This includes emphasizing the benefits of the franchise model in general. These benefits fall into the following key categories. LOCAL ECONOMIC BENEFITS Arkansas dealers generate good-paying, local jobs with benefits and opportunities for advancement and professional development. New car and truck dealerships in Arkansas are a $12.5 billion per year business and have a total payroll of nearly $907 million, directly employing more than 12,500 people across the state and supporting another 10,500 jobs. Jobs at local dealerships are more than just jobs; they become high-paying careers for thousands of Arkansans. There are almost 260 new car and truck dealers in Arkansas operating in large and small communities across the state, providing Arkansans access to vehicle sales and service in or near their local communities. PRICE COMPETITION Independently owned, local new car and truck dealers compete fiercely for vehicle sales and service both intra- and inter-brand. This competition drives down costs and improves customer service by giving Arkansans the ability to negotiate vehicle prices and trade-in values and choose which dealership best fits their needs. ACCOUNTABILITY AND SAFETY Arkansas dealerships ensure safety recalls and warranty work are addressed fairly and efficiently because their interests are more aligned with Arkansans. Manufacturers view safety recalls and warranty work as an expense while local dealerships create an extra layer of accountability for public safety. For Arkansans, having a dealer advocate on their side makes safety, warranty and service solutions easier and more beneficial for all consumers. Dealerships truly are the Arkansas economic engine, and it is the responsibility of AADA to make sure this message is always promoted. It is critical for our continued success at the State Capitol. Greg Kirkpatrick President, AADA PROMOTING ARKANSAS DEALERS 4 Arkansas Auto Dealer
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Harsha Ramayya, harsha.ramayya@bofa.com business.bofa.com/dealer ©2023 Bank of America Corporation. All rights reserved. DFS-699-AD 5949042 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
2025 TIME DEALER OF THE YEAR NOMINEE TIME has announced Roger Smart Jr. as a 2025 TIME Dealer of the Year nominee for his community service and industry accomplishments. Smart is one of a select group of 49 dealer nominees from across the country who were honored at the 108th annual National Automobile Dealers Association (NADA) Show in New Orleans, Louisiana, on Jan. 25, 2025. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Smart was chosen to represent the Arkansas Automobile Dealers Association in the national competition — one of only 49 auto dealers nominated for the 56th annual award from more than 20,000 nationwide. “We pride ourselves on making a personal connection with each of our customers and continuing that bond throughout their car-buying and ownership experience,” nominee Smart said. “By forming strong relationships, we maintain loyal customers not only for a lifetime but also across generations.” And those generations of customers extend back to 1906 when Smart’s great-great-grandfather, Felix G. Smart, founded the F.G. Smart Company and started selling cars in Pine Bluff, Arkansas. Smart, who earned B.S. and B.A. degrees in both accounting and finance at the University of Arkansas in Fayetteville in 2002 and 2003, respectively, is the fifth generation to join the family enterprise. He started in 2004 and worked in all dealership departments before being named dealer principal of the Chevrolet and Cadillac franchises in 2008. He also attended the NADA Academy to prepare for his future leadership role. Smart has greatly expanded the company’s footprint by acquiring dealerships and overseeing the building of new facilities. Today, the Smart Auto Group encompasses dealerships in White Hall, Pine Bluff and Malvern, Arkansas, SMART Jr. Roger 6 Arkansas Auto Dealer
We pride ourselves on making a personal connection with each of our customers and continuing that bond throughout their car-buying and ownership experience,” nominee Smart said. 7 Arkansas Auto Dealer
representing Buick, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Jeep and Ram. “In my career, I have been very fortunate to work with three of the five generations of Smarts,” he said. “The wealth of experience that I’ve had access to has positioned both the dealership group and me for success. To this day, when weighing important decisions, we often find ourselves asking what my grandfather would do.” With such a historic connection to the automobile industry in his state and a deep understanding of the issues that face dealers, Smart was named chair of the Arkansas Automobile Dealers Association in 2024, where he previously served in leadership positions. Interestingly, his great-grandfather was the association’s first president in 1932. Smart also contributes to the communities that have supported his family for more than a century. He is a member of the Pine Bluff Regional Chamber of Commerce, White Hall Chamber of Commerce and the Malvern/Hot Spring County Chamber of Commerce. The Smart Auto Group gives back by sponsoring numerous events locally, including the Miracle Ball and Festival of Stars Toy and Donation Drive for Arkansas Children’s Hospital, Chili Fights in the Heights to support the Arkansas Foodbank, and Jefferson County Kids Fest. He also supports Go Forward Pine Bluff, a group that is dedicated to economic development and improving the quality of life in the city where his family’s first dealership was founded so many years ago. “Our dealerships have been and always will be a mainstay in the communities in which we are located,” Smart said. “Through a multitude of efforts, we have contributed to the well-being of the people we serve. No matter how much our business evolves, we will stay true to that principle.” Dealers are nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists receive $5,000 for their favorite charities and the winner receives $10,000 to give to charity, donated by Ally. In its 14th year as an exclusive sponsor, Ally also will recognize dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)3 charity of choice. Nominees are recognized on AllyDealerHeroes.com, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees. “At TIME, our commitment to recognizing the exceptional contributions of automotive dealers remains as strong as ever,” said Jessica Sibley, CEO of TIME. “The TIME Dealer of the Year award continues to celebrate those who not only excel in their profession but also make a meaningful impact in their communities. We are thrilled to continue this legacy in partnership with Ally.” Doug Timmerman, Ally president of Dealer Financial Services, said, “Auto dealers are the backbones of their communities, providing civic support and significant business leadership. Ally is proud to recognize the unwavering commitment these TIME Dealer of the Year nominees are living every day through their volunteerism, sponsorships and support of charitable causes. They are the epitome of community heroes, making important and positive impacts in the lives of the people they serve.” Smart was nominated for the TIME Dealer of the Year award by Greg Kirkpatrick, president of the Arkansas Automobile Dealers Association. Smart and his wife, Sarah, have two children. 8 Arkansas Auto Dealer
AADA recently finished up a very successful series of regional meetings with a focus on rebuilding our grassroots connection with dealers across the state. These meetings were long overdue and well received by all the dealers who attended. The goal for each grassroots stop was to give an update on the work AADA is doing on behalf of dealers and hear from each of you on what we can do better! This year’s meetings included stops in El Dorado, Fort Smith, Jonesboro, North Little Rock and Springdale. Some of the key items included an update on the upcoming legislative session, AADA’s new initiative with the Hunger Relief Alliance, updates on the AADA Health Benefit Plan, an analysis of how the presidential election would impact the industry, challenges facing the industry and much more! We would like to thank all the dealers who were able to attend, as well as Lee Martinez and Joe Latham from our endorsed F&I partner, The Versant Group, for their support. Keep a lookout for the next series of grassroots meetings coming up next spring. Does your CPA firm help drive your business forward? hhmdealership.com Dealerships need the specialized services of a committed and independent CPA firm with a proactive approach to enhancing business and fueling growth. HHM is that kind of firm. AADA GRASSROOTS MEETINGS A Huge Success 10 Arkansas Auto Dealer
FALL BOARD OF DIRECTORS Meeting Recap On Oct. 24, 2024, AADA held its Fall Board of Directors Meeting at the AADA office in North Little Rock after having a delicious lunch. This meeting is always a special event for all as AADA formally recognizes the transition of AADA officers as well as those board members who are rotating out of their term. Several important items that were discussed were the budget and legislative review, legal and industry updates and much more. We would like to thank outgoing Chairman Jay Dooley for his incredible service to AADA last year, and we welcome incoming Chairman Roger Smart. We would also like to thank Michael Dickerson with Whitson-Morgan Motor Company for agreeing to serve as vice chairman and Jimmy Langley with Smackover Motors for agreeing to serve as treasurer. The future is bright with these leaders at the helm of AADA! 11 Arkansas Auto Dealer
AADA AT THE GOVERNOR’S MANSION CIRCLE OF FRIENDS Christmas Party Arkansas franchise dealers helped kick off the holiday season with the annual Governor’s Mansion Circle of Friends Christmas Party. Gov. Sarah Huckabee Sanders and First Gentleman Bryan Sanders opened their home for a festive evening celebrating the season. AADA was well represented by Ted and Laurie Smith with Smith Ford in Conway, Harry and Nancy Robinson with Harry Robinson Buick GMC in Fort Smith, Jack and Mary Beth Caldwell with Caldwell Toyota in Conway, and AADA President Greg Kirkpatrick. Jack and Mary Beth Caldwell were able to catch up with a friend from Hope, Gov. Mike Huckabee. 12 Arkansas Auto Dealer
Safety Training Resources and HR Support at Your Fingertips Access industry-specific training, sample forms and policies, an employee handbook builder tool, and more 24/7 with mySHIELD®. Commercial Insurance Property & Casualty | Life & Disability Income | Workers Compensation | Business Succession and Estate Planning | Bonding Federated Mutual Insurance Company and its subsidiaries** | federatedinsurance.com 23.02 Ed. 12/22 *View A.M. Best Rating Guide information at www.ambest.com. **Not licensed in all states. © 2022 Federated Mutual Insurance Company Scan to learn more about mySHIELD®. The content of this publication is for general information purposes only. Consult with a qualified professional when you have detailed questions regarding any topic in this publication. AN ASSOCIATION MEMBER BENEFIT FOR 119 YEARS DIRECT, LOCAL MARKETING REPRESENTATIVES AUTO PROPERTY AND CASUALTY SELF-INSURED RETENTION POLICYHOLDER SURPLUS LIVE VOICE CUSTOMER SERVICE TAILORED, INDUSTRY-SPECIFIC COVERAGE BUSINESS SUCCESSION AND ESTATE PLANNING STABLE FACE-TO-FACE RELATIONSHIPS FINANCIAL STRENGTH MUTUAL COMPANY DIRECT CLAIMS REPRESENTATIVES 500+ EXCLUSIVE ASSOCIATION RECOMMENDATIONS ESTATE PLANNING ATTORNEY NETWORK ANNUITIES WE’RE BETTER TOGETHER LIFE AND DISABILITY INCOME PRIVATE BONUS PLANS KEY PERSON COVERAGE WORKERS COMPENSATION HIRING PRACTICES FEDERATED DRIVESAFESM TELEMATICS SOLUTION RISK MANAGEMENT RESOURCE CENTER EMPLOYMENT RELATED PRACTICES LIABILITY EMPLOYMENT LAW ATTORNEY NETWORK BONDING EMPLOYEE SAFETY TRAINING RISK MANAGEMENT ACADEMY CLIENT CONTACT CENTER FIELD RISK CONSULTANTS CERTIFICATE CENTER SURETY SPECIALISTS MANAGED CARE CYBER MYSHIELD® IT’S OUR BUSINESS TO PROTECT AADA MEMBERS
2024 AADA Christmas Party AT THE ARKANSAS MUSEUM OF FINE ARTS Dec. 5, 2024 AADA hosted the annual Board of Directors and Past Chairman Christmas Party at the beautiful Arkansas Museum of Fine Arts. The evening is always a highlight of the year for AADA, and this year’s event did not disappoint with smiles and celebration all around! 14 Arkansas Auto Dealer
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THE GRIND WE KNOW As we sit in Q1 of 2025, it’s become very clear that the landscape in our industry has drastically changed — and quickly! In 2023 and 2024, we witnessed inflation, interest rates topping a 20-year high and global conflicts, which added to economic uncertainty for the consumer. We watched as our front gross eroded, expenses increased, the used-car market dropped, and inventory arrived swiftly. All this on the heels of the best, and may I say, easiest three years in the history of the automotive business. Everyone made a lot of money with little effort. During a recent conversation with a dealer, he shared words that are indicative of where we stand: “Our guys got sloppy. We forgot how to sell. It was too easy, and now we are in a pinch.” We are back to the grind that we know as the car business! So, what should we do? BRINGING BACK THE FUNDAMENTALS Dealers are looking to return to tight processes and consistency in their showrooms. Early management intervention, qualifying conversations, quality walkarounds/demos, proper turns to the F&I as the Car Business By Jason Rasti, Executive Vice-President The Versant Group As we sit in Q1 of 2025, it’s become very clear that the landscape in our industry has drastically changed — and quickly! 16 Arkansas Auto Dealer
department and consistent sales meetings are some of the fundamentals that many sales teams have moved away from. As a result, we have continued to diversify our training offerings here at The Versant Group, making sales and sales management training a top priority this year! Not only are our territory managers doing more in-dealership sales training than ever before, but we are also devoting every Wednesday to Sales Management Training on our Versant Virtual Coaching Platform! As you may know, in April 2020, as a response to the COVID-19 pandemic, we started virtual training via Zoom. We continue to have 100+ attendees for the daily 15-minute sessions. Although this has been primarily F&I focused, we are now doing a weekly session on topics such as holding productive sales meetings, the dos and don’ts of effective sales training, hiring winners and other sales-related topics. NEW PRODUCT OFFERINGS Speaking of lower front grosses, dealers have been asking us for more products to bridge the gap! Some of our newer products include Ceramic Safe-Shield Protection, Windshield Protection, Short Term Dealer Certified Programs, GPS Location Services and our latest addition, Precision Protect! Some of these products are offered in the traditional fashion in the F&I office, while others, such as Ceramic Protection and GPS, are primarily presented and sold by the salesperson up front. Consumers are seeing value in these products, leading to high penetrations and increased profit margins for the dealers utilizing these tools. Those of us who have been at this for a while know when our business takes a turn, it’s time to make changes. At The Versant Group, we are evolving to ensure we are prepared to offer the best resources to our dealers! Please contact any of us at The Versant Group for assistance. We would love to help! For more information, visit our website by scanning the QR code. https://theversantgroup.com/ SAVE THE DATE! 2025 AADA CONVENTION July 22-25, 2025 17 Arkansas Auto Dealer
AADA SUPPORTS HUNGER RELIEF WITH DONATION TO ARKANSAS HUNGER RELIEF ALLIANCE The Arkansas Hunger Relief Alliance is excited to announce a generous donation from AADA, further strengthening efforts to reduce hunger across the state. This contribution will support the Alliance’s ongoing work to provide nutritious food to families in need and promote long-term food security for Arkansans. “The Arkansas Automobile Dealers Association is proud to collaborate with the Arkansas Hunger Relief Alliance in our shared mission to combat hunger at home,” said Frank Hug of Hug Chevrolet GMC. “This partnership enables us to leverage our resources and community presence to make a meaningful impact.” AADA presented the donation to the Alliance on Thursday, Oct. 17, 2024, at Hug Chevrolet GMC, located at 415 E. Main St. in Charleston, Arkansas. The donation enabled the Alliance to expand its network of food distribution, enhance hunger-relief programs and directly assist vulnerable populations, including children, seniors and rural communities. “Auto and truck dealers throughout Arkansas have a long history of supporting the needs in their communities,” said Greg Kirkpatrick, president of the Arkansas Automobile Dealers Association. “We see this partnership with the Arkansas Hunger Relief Alliance as an opportunity for our members to assist in ensuring that more families across the state have access to nutritious food.” “We are incredibly grateful for the Arkansas Automobile Dealers Association’s commitment to helping us ensure that no Arkansan goes hungry,” said Sylvia Blain, chief executive officer of the Arkansas Hunger Relief Alliance. “This gift demonstrates the power of community partnerships.” About Arkansas Hunger Relief Alliance The Arkansas Hunger Relief Alliance is a collaborative statewide voice advancing equitable solutions to hunger. Their vision is to create a hunger-free Arkansas. Founding members include the Arkansas Foodbank in Little Rock, Food Bank of North Central Arkansas in Mountain Home, Food Bank of Northeast Arkansas in Jonesboro, Harvest Regional Food Bank in Texarkana, Northwest Arkansas Food Bank in Springdale and River Valley Regional Food Bank in Fort Smith. Visit arhungeralliance.org for details on hunger relief programs and donor and volunteer opportunities. 18 Arkansas Auto Dealer
PLAN NOW FOR A SMOOTH BUSINESS TRANSITION LATER Learn Strategies to Avoid 7 Common Pitfalls When Preparing for Dealership Transition By Duncan Moseley Managing Director in the Center for Family Legacy at Truist, and Stacey Prince-Troutman, Partner and Chair of the Trusts and Estates Practice at Akerman LLP It can take years — or generations — to build a thriving auto retailing enterprise. The complexities can make a smooth transition to the next generation challenging, but addressing key concerns and problem-prone areas today will make the transition easier down the road. Getting started early on structuring can help ensure a more seamless transfer and the continued success of your business. NO ONE-SIZE-FITS-ALL APPROACHES A business transition ideally occurs when the right conditions align in 1) the market, 2) the business and 3) timing for the owner. In the real world, dealers must balance these elements, making tradeoffs based on what’s possible and how flexible they’re willing to be on payout and timing. A long runway allows you to better coordinate the timing and address other potentially thorny issues to ensure a smooth and rewarding exit. While every dealership is different, certain shared characteristics make transitions particularly tricky: • Multi-layer structures. Auto retail businesses often have several value drivers, such as real estate, new and used car sales, parts and service revenues, and F&I profit participation funds, among others. Many long-established businesses have real estate and business investments throughout the community. • Multi-generational and minority operating partner involvement. Dealerships often have immediate and extended family, along with operating partners with minority 19 Arkansas Auto Dealer
ownership stakes, in various roles, from active dealership management to passive ownership. • Hardworking owners. Owners who’ve invested years into building a business look forward to enjoying an active, well-funded retirement. In our experience, car dealers are among the most passionate about staying in the business for the long term. • Tax concerns. Dealer businesses and estates need to be properly structured to minimize tax liabilities and preserve wealth. • OEM relationships. The OEM, with its operational and investment requirements, functions as another “partner” in the business. Involving the OEM in the succession planning process can help maintain a strong relationship post-transition. Reaching the transition outcomes you want for your business, your family and yourself hinges on how you’re able to get ahead of and manage these issues effectively. AVOID THESE 7 COMMON TRANSITION PITFALLS 1. SUBOPTIMAL BUSINESS STRUCTURE Structure the business and its assets efficiently — this is of key importance in maximizing wealth transfer, as well as stabilizing the business through any transition. Though your immediate focus may be on day-to-day operations, your business grows increasingly complex as you add dealerships, real estate corporations, reinsurance corporations and, perhaps, a management or holding company. Save time and expense in accomplishing your estate goals by getting guidance from a trust and estate planning attorney early in the lifecycle of your business. A well-designed business structure not only provides significant tax benefits but also lays a solid foundation for effective, ongoing management and governance of all the entities that make up your business. If the business is intended to pass generationally, you can also minimize or even eliminate any estate tax burden that may be placed on the business and, therefore, better secure the continued success in the next generation. 2. UNTIMELY TAX PLANNING It’s impossible to overemphasize the importance of conducting early estate planning long before you exit the business — it’s the most important tactic for achieving tax-efficient wealth transfer. If the business’ valuation is significant, then planning for adequate liquidity when the estate passes is a primary concern. Starting a transition without a plan in place means fewer opportunities to minimize your tax exposure, including: • Leveraging the estate tax exemption. • Putting valuation discounts in place. • Considering trust structures to meet your estate planning goals. • Passing wealth, through gifting, to lower the taxable estate value. It’s important to proactively work with your Truist dealer relationship manager and wealth advisor on plans related to trusts. In addition, experienced estate attorneys and financial advisors can help you capitalize on every occasion to reduce the tax burden as you transfer ownership. 3. LAST-MINUTE GIFTING Another tax-saving strategy is to gift while you’re still operating the business. Waiting until the last minute may reduce the likelihood of achieving the best transfer outcomes for you and your family. To create a plan that fits your age, where you are in the business lifecycle and the level of involvement you want going forward, ask: • What are your motivations and goals around transition? • What income do you need to maintain your desired lifestyle? • What other assets and income streams do you have? A qualified estate planning attorney, accountant, financial advisor and banking relationship manager can work as a team to design a gifting strategy that achieves the tax benefits and succession outcomes you want and to set up the level of continued income and involvement that you desire. As maintaining control is a primary consideration for most of our owners, consider the transfer of non-voting interests and retaining voting interests. This can provide you with flexibility if business or economic shifts occur. Moreover, explore different trust structures. For instance, an irrevocable life insurance trust can be designed to achieve tax-free wealth transfer and provide liquidity for payment of estate tax to the extent that any portion of the retained business interest is included in your estate. 4. CONTENTIOUS FAMILY DYNAMICS Transition planning forces leaders to make tough choices that may lead to dissent among family members. It may be tempting to let it unfold once you’ve stepped aside, but it’s best to address these issues upfront for the sake of your family and your business. Strong emotions, old resentments and challenging personal relationships can complicate planning and transition. These situations often present themselves in blended families, when there are longstanding rifts within a family and when some children are engaged in the business while others are not. Bypass sentiment and think objectively about who is best qualified to assume leadership of the family enterprise. It may be best to determine now whether business ownership can be shared with all family members or if ownership needs to be held within a smaller subset of the family to provide the best chance of continued success. If an owner’s primary goal is continued family harmony, then a decision may need to be made to transition the business prior to the owner’s passing if issues resulting from complicated family dynamics cannot 20 Arkansas Auto Dealer
be resolved. With solid reasoning behind your choices, you’ll be better prepared for those potentially uncomfortable conversations. 5. PSYCHOLOGICAL RESISTANCE Dealers sometimes hesitate to start transition planning, slowed by conscious or unconscious concerns regarding: • Uncertainty about what legacy they wish to leave. • Discussions of their own passing. • Loss of identity (“the business is who I am”). • Loss of the leadership role in the family. • Loss of the primary income stream. • Loss of control. Consider your long-time employees, your management team, your business partners and your family. Crafting strategies that are fair to each person is a daunting task. Tackling such an undertaking means contemplating handing over a business you’ve worked hard to nurture and grow, which can keep you stuck on the starting block. These doubts and anxieties can become paralyzing, but it’s important not to let them delay or prevent progress on your transition planning. If it starts to feel overwhelming, remind yourself that you don’t have to get it perfect right now. Start the process where you are today. You can improve your plan over time, adapting it as your vision and goals for your post-transition life evolve. 6. DELAYS IN SEEKING OEM APPROVAL Getting OEM approval needs to be part of your exit planning process. As dealer groups become more complex, the OEMs typically want to see more documentation and have a say in the plans of the business. While it’s not likely to pose a problem, OEMs are more curious about the details of dealers’ succession plans than they once were. Here again, timing is paramount. Start the process early to make sure the OEM is on board with your plans. They may request that you structure the succession plan with a ramp-up period to get comfortable with the successor you’ve chosen. 7. THE WORST-CASE SCENARIO: NO TRANSITION PLAN To prevent chaos in the event of an untimely death, even young owners need a succession plan. Not having one could create a daunting tax liability for your family and threaten the continuity of the business. A well-constructed plan will address existing contractual and shareholder agreements to build a path for successors without any financial fallout for the business. That includes addressing the inheritance split if one child never worked a day in your dealership and the other has devoted their life to it. You want to make sure your family won’t be forced to sell at fire sale prices and will be able to continue with minimal conflict or lingering feelings of inequity. To achieve the best outcomes for everyone involved, prepare for the unexpected by getting a plan in place and continuing to refine it. Special thanks to Stacey Prince-Troutman, partner and chair of the Trusts and Estates Practice at Akerman LLP, for her contribution to this article. To learn how Stacey and her firm can help your dealership, she can be contacted at stacey.prince-troutman@akerman.com. Truist Bank, Member FDIC. ©2025 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. Equal Housing Lender. 21 Arkansas Auto Dealer
ENDORSED PROVIDERS The companies listed below have been “endorsed” by AADA to provide products and services to its members, each having been examined and critiqued by the Services Committee and approved by the board of directors. These relationships also provide funding for AADA programs throughout the year such as the annual convention, membership directory and much more. THE VERSANT GROUP Lee Martinez/Joe Latham (318) 934-3121, (501) 838-9717 lee.martinez@theversantgroup.com joe.latham@theversantgroup.com The Versant Group, formed in 2000, is a “dealer‑owned” F&I company organized for the purpose of providing “best in class” F&I products, service, income development and training to automobile dealers in Arkansas and the southeast United States. AMERICAN FIDELITY Steve O’Kane (913) 486-7005 steve.o’kane@americanfidelity.com Benefit plans include long and short-term disability, Section 125, cancer and more. CAADSSIF (CENTRAL ARKANSAS AUTOMOBILE DEALERS SELECTIVE SELF-INSURANCE FUND) Kim Martin (501) 372-2596 kmartin@arkautodealers.com CAADSSIF has provided Arkansas new car and truck dealers workers’ compensation insurance for 40 years. As Arkansas’ most successful group self-insured program, CAADSSIF has returned nearly 60% of surplus premiums annually. FEDERATED INSURANCE COMPANY Zach Ours (816) 885-5673 zwours@fedins.com Federated Insurance Company provides garage liability, property and casualty insurance. Federated marketing representatives use a “Right Report” to tailor coverage to meet individual dealers’ specific needs, and coverage is updated thoroughly each year with an “Annual Client Review.” REYNOLDS & REYNOLDS Richard McClain (501) 269-1593 richard_mcclain@reyrey.com Over 4,000 computer business forms are available, including the LAW F&I Library. The forms are regularly reviewed by industry experts and legal advisors. Customized forms are also available. JTS FINANCIAL SERVICES Charles Angel (501) 227-0194 charles.angel@jtsfs.com JTS is a true partner for your business, providing dependable, personal service as they guide Arkansas businesses through the complicated world of employee benefits. They work to protect the interests of their clients through unique and innovative approaches to employee benefits and human resources. 22 Arkansas Auto Dealer
ARMATUS DEALER UPLIFT Jordan Jankowski (443) 391-5702 jordanj@dealeruplift.com Armatus Dealer Uplift is the largest provider of Retail Warranty Reimbursement submission services in the country. The company has worked with nearly 7,000 dealers, has over 16,000 successful submissions in all 50 states, assisted with drafting 17 warranty reimbursement statutes and is endorsed by 23 state dealer associations. A commitment to technological advancement makes Armatus the only turn-key solution in the industry capable of handling large volumes of work with precision and accuracy. With state‑of‑the‑art, proprietary software, Armatus assures dealers get optimal results. The mission of Armatus is to ensure dealerships get paid at the highest rate, in the shortest period of time and with as little disruption as possible. For more information, visit www.dealeruplift.com or call (877) 477-2228. COMPLYAUTO Nick Moyes (661) 213-9054 nick.moyes@complyauto.com The only true “all-in-one” FTC Safeguards compliance solution. Compliance is automatically performed, logged and demonstrated in one simple platform. AADA FORMS COMPANY AADA (501) 372-2596 frontdesk@arkautodealers.com Dealership forms, such as odometer statements, TIMA forms, etc., are shipped through UPS for fast delivery. AADA QUICK TITLE SERVICE Jennifer Curlin (501) 372-2596 jcurlin@arkautodealers.com The title service provides duplicates, corrected titles, transfers and title & registrations, usually within a week. Assistance with “suspense” files is also available. ARS (ARKANSAS REGISTRATION SERVICES) Kim Martin/Jennifer Curlin (501) 372-2596 info@arstemptags.com ARS is a state-approved vendor for the web-based SecureETag Temporary Tag System in Arkansas. ARS allows dealers to provide their customers with paper temporary tags as required by law. AVIS (ARKANSAS VEHICLE INFORMATION SYSTEM) Jennifer Curlin (501) 372-2596 jcurlin@arkautodealers.com Franchise dealers, banks, credit unions and finance companies qualify for this unique program. The service allows for direct access to the DFA Motor Vehicle Web Portal to file direct liens and perform vehicle inquiries. 23 Arkansas Auto Dealer
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