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
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