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2003-18 concluded that the IRS would treat an vehicle seller’s acquisition of a different or second model of dealership, beneath sure circumstances, as an growth of an present business, rather than as an acquisition of a brand new or completely different one below Sec.
I’ve been consulting with dealers for practically 4 many years and have participated in over 1,000 automotive transactions starting from $a hundred,000 to over $one hundred,000,000 and have never seen the worth of a dealership sale decided by any multiple of earnings until and till all of the above components have been thought of and the buyer then determined he, she or it was prepared to spend “x” times what the customer thought the dealership would earn, in an effort to purchase the business opportunity.
A new automotive dealership just isn’t going to inform you to run residence and get in your laptop to seek out out what the invoice price for his or her automobile is. Neither will, a purchase right here automotive lot tell you which you can get on the Internet and get a greater deal in your financing.
The automobile was nonetheless …