Pub 11 2021 Issue 2

8 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com COUNSELOR’S CORNER An Eruption Ahead? Pent Up Dealership Buy-Sell Activity in a Post COVID -19 Future By Julie A. Cardosi, Law Office of Julie A. Cardosi, P.C. M aking the 2021 annual list of the National Associa- tion of Dealer Counsel’s (NADC) top legal trends for automobile dealers is again, buy-sell activ- ity. As reported by dealers and brokers, after the chaotic business climate of 2020 — a steady upswing of dealership buy-sell activity in the latter half of 2021 is expected. Pent-up buy-sell transactional activity appears to be a further fallout of the COVID-19 pandemic with experts speculating that valuations will reach record highs for nearly all brands. If your business is considering a buy-sell transaction, either as a buyer or as a seller, will you be adequately prepared? There are numerous considerations for a proposed buyer or sell- er to think about before entering a buy-sell transaction. The best time to enlist the assistance of competent automotive counsel and any other advisors is at the consideration stage, well before the implementation stage and prior to any negotiations. Impor- tant legal, tax and planning considerations exist which can im- pact the unique structure of each transaction differently. Parties aspiring to put together a buy-sell will often eagerly engage in discussions, reach preliminary understanding of material terms and only after key terms are set, consider engag- ing lawyers to prepare required contracts and memorialize the