Pub. 4 2022 Issue 1

How to Design Your Dealership Succession Strategy Paul Skeen, CPA, Partner, Eide Bailly Succession planning is an essential business activity for dealer owners, whether you own an auto or truck dealership, an implement dealership or a heavy equipment dealership. This strategic approach is essential to estate planning and helps ensure sustainable business continuity after you’ve left the dealership business, whether through retirement, an unexpected life event or even death. A documented, approved, and well-understood plan increases the likelihood the transition will go to the successor you choose and happen how you want. 1. Build your team. To start building out your succession plan, you must first create a planning team. This team might include your CPA, financial planner, estate planner or business attorney, insurance representative, any necessary business counselors or advisors, and relevant family members and/or key management, including your chosen successor, once you’ve determined who this will be. Your team might evolve to include (or exclude) certain individuals over time. 2. Develop your crisis plan. Next, you must develop a crisis plan. Your crisis plan should outline the next steps should something happen to you, the dealership owner, unexpectedly. It assigns a management team and outlines responsibilities, and it also includes pertinent documents like loan information and other financial resources. 3. Align plans. You must also align your estate plan with your succession plan. Oftentimes, great estate planning doesn’t equal great succession planning. For example, your 22

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