Mike Brown was working as the fixed operations director for nucar auto group when, in August of 2024, he got a call from David Rosenberg. Rosenberg, whom Brown had worked for in the past, had an intriguing offer. Rosenberg, owner of DSR Motor Group, was working on an acquisition.

Outside capital can be a valuable resource whether to a dealer with only a few franchises seeking to grow his or her dealership group or a larger group looking to get even bigger. But the rewards also come with risks, as two examples of outside capital show.

If you’re considering working with a private equity firm in a buy sell deal, be prepared for hurdles you are unlikely to encounter with a traditional investor. There are advantages to working with PE, however.

While you may have seen headlines about private equity moving into the buy sell world, that can actually be something of a misnomer. It is generally more accurate to say that different forms of outside capital, of which private equity is one, are investing in automotive dealerships. Those investors differ in the amount they invest and terms under which they invest.

Although potentially customized and of a different vintage for each dealer, we looked at a copy of CDK’s Master Services Agreement (the “MSA”) to see how it addresses CDKs privacy and cybersecurity obligations and liability.

On the evening of June 18 CDK, whose dealer management system is used by some 15,000 dealerships, was hit by a cyberattack. The cybercriminals struck again the next day.

Baker Automotive Group acquired a Mitsubishi franchise in Bonita Springs, Florida in June, part of the Group’s growing footprint in The Sunshine State. The brand does well in Florida, according to Brandon Baker, president of Baker Automotive Group. Getting to Go! talked with Baker to hear more about the acquisition.

Getting to Go! surveyed Scali Rasmussen LinkedIn followers and those on our email list regarding cybersecurity concerns when acquiring a dealership. The top concern was how much exposure a dealership has to cybersecurity attacks.

Kyle Coleman recently became a first-time dealer principal after 18 years working in retail automotive. His acquisition is the foundation for a group he aims to grow to 40 rooftops over the next 15 years.

For the last two or three years, few of Withum’s dealership clients looked at their expense structures, Stuart McCallum, leader of the tax advisory firm’s dealership services practice, says. Dealerships were making money hand over fist and didn’t feel the need to conserve money. Those days are gone.