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Motor Industry Services Alert – June 2017

Motor Industry Services Alert – June 2017

In this edition we explore the practice fundamentals in buying a dealership franchise to future proof profits.

Wayne Pearson

Director, Motor Industry Services, KPMG Enterprise

KPMG Australia


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Are my profits future proofed?

In a market where goodwill multiples are at an all-time high and the quest for turnover can sometimes overtake the need for profit, we often hear the question "What dealership should I buy that future proofs my profits?". Franchise success comes and goes, but best practice fundamentals do not.

In the June 2017 edition we equate the price you pay with the value of the business you are buying.

Key highlights

  • The 6 Key Performance Indicators to consider for a long-term successful dealership.
  • The minimal acceptable performance levels that need to be achieved to deliver an acceptable Return on Investment, including performance standards for each department.
  • Non-negotiable questions dealerships need to ask itself to future proof their business.

This edition also incorporates what actions and activities will help you achieve the outcomes necessary to be a successful dealership.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Liability limited by a scheme approved under Professional Standards Legislation.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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