How to Recast Your Automobile Dealership

Use this checklist to gather the information you’ll need to recast your store:

1. Collect the past 3-5 years of financial statements and the most current year-to-date financial statement for each franchise owned.
2. Gather and present your non-productive expenses on your statements, including management fees, family expenses, excess rent over market, boats, planes, and vehicles provided for sponsorship.
3. You will want to create a summary of your financial statements for each franchise. Information should be listed by year to current year-to-date and include a total month average. Make sure the document is clear and easy to read and consists of a maximum of 2 pages: the first for income and expenses and the other for departmental breakdown.

Page 1: Summary of Financial Statements

• Total Sales
• Total Gross
• All Expenses
• Selling Expenses
• Employment Expenses
• Semi-fixed Expenses
• Fixed Expenses
• Operating Profit
• Net Additions
• Net Profit
• Include all non-productive (non-business related) expenses that can be added back
• Provide Cash Flow amount (Net Profit + Add backs)

Page 2: Departmental Summary

• New Vehicles (separate details for cars and trucks)
• Total New Vehicle Retail Sales Units
• Total New Vehicle Retail Gross
• Gross per Retail Unit
• Total New Vehicle Units
• Total New Vehicle Gross
• Gross per New Vehicle Unit
• Net Income per Employee
• Service Department (separate details for mechanical and body)
• Service Department Sales
• Service Department Gross
• GP % of Sales
• GP per Employee
• Parts Department
• Parts Department Sales
• Parts Department Gross
• GP% of Sales
• GP per Employee
• Total Employees
• Sales per Employee
• Gross per Employee

If your goal is to share this information with potential buyers, it is strongly recommended that:

• The document is coded so that your store cannot be identified (confidentiality).
• The document is saved in a PDF format so that the data cannot be manipulated.
• Financial Summaries be updated monthly so your information is kept current.

Have questions about recasting your store?

Call me at 800-800-4728 – or submit your question below. I’ll get back to you as soon as possible.

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