Automobile Dealership

According to a recent article in the NY Times: The Chrysler Group said Monday that it had not yet accounted for tens of thousands of cars in its inventory numbers, which are already considered high by industry standards. Chrysler said it had routinely excluded these vehicles, worth billions of dollars, from its tally of unsold […]

Almost every financial organization has a workout department. Their names are as varied as Problem Loan Administration; Central Loan Department; or Special Assets Department. A dealer may be assigned to one of these special departments, or a member of the department may start appearing at meeting with the dealer’s regular bank officer. The courts have

The IRS defines goodwill as “the value of a trade or business based on expected continued customer patronage due to its name, reputation, or any other factor.” IRS Publication 535: Business Expenses, Ch. 9, Cat. No.15065Z. The American Society of Appraisers defines goodwill as: “that intangible asset arising as a result of name, reputation, customer

Blue Sky is the intrinsic value of an automobile dealership, over and above the value of its tangible assets. It is sometimes equated to the goodwill of a car dealership. Most articles regarding the blue sky value of new car dealerships cite a multiple of earnings formula, such as three times earnings, four times earnings,