PALO ALTO, Calif., April 7, 2014 /PRNewswire-iReach/ -- Advising Automobile Dealers Guides Audi Dealership through Sale and Complexities of Distributor's Right of First Refusal
Advising Automobile Dealers LLC, a dealership consulting firm, guided Carlsen Motor Cars, Inc. through the process of packaging, negotiating and selling its Audi dealership in Palo Alto, California; and then through the maze created when Audi of America, Inc. (AOA) exercised its Right of First Refusal.
Located 4-miles from Stanford University, Carlsen Audi was established in 1973 and was the first exclusive Audi dealership in northern California. It was a subsidiary of Carlsen Motor Cars, Inc., which also owns and operates Carlsen Porsche and Carlsen Subaru in Redwood City, California. Charles A. Burton is the dealer principal for all of the Carlsen dealerships.
Carlsen Motor Cars, Inc., known as an organization of quality and fair dealing for over half a century, will continue to operate its Porsche and Subaru dealerships located in nearby Redwood City, California.
Carlsen Motor Cars, Inc. entered into an Asset Purchase Agreement to sell its Audi dealership to an out-of-state dealership group. Concurrently, Carrera PRB LLC, the owner of the dealership facility, executed a Real Estate Purchase Contract to sell the dealership land and facility to an entity controlled by the party purchasing the dealership.
On January 31, AOA notified the dealer that AOA was exercising its Right of First Refusal (ROFR). That same day, AOA entered into an Assignment and Assumption Agreement whereby AOA assigned its right to purchase to Kuni Automotive Group.
Te closing of escrow for both the dealership and real property took place on March 31, 2014.
The Kuni Automotive Group (Kuni) was the assignee and purchased the dealership through a newly formed LLC and will name the dealership Audi Palo Alto.
Kuni, one of the top 100 dealer groups in America, will remodel the facility and add it to its collection of brands which includes two other Audi dealerships (San Diego, California and Boulder, Colorado). Kuni currently owns and operates Audi, Lexus, BMW, Land Rover, Porsche, Infinity, Honda, Volkswagen Chevrolet, Cadillac, Buick and GMC dealerships across four states.
Gregory A. Goodwin is the CEO of Kuni Automotive. The shares of Kuni Automotive are owned by Greg Goodwin and the Wayne D. Kuni and Joan E. Kuni Foundation, which is the largest shareholder of Kuni Automotive.
About the Advisor
Advising Automobile Dealers LLC (AAD) is the nation's foremost consulting firm with respect to automobile dealership issues: purchases, sales, analysis, valuations, business plans and litigation support.
AAD's managing partner, John Pico, has participated in over 200 automotive transactions in the San Francisco Bay Area and more than 1,000 transactions nationwide since he began advising car dealers 42-years ago, as an attorney that represented some of the largest dealership groups in the county.
Mr. Pico is a student of the industry and in 1986, after selling his firm and retiring from the practice of law, he published the first books to be placed in the United States Library of Congress delineating the Buying and Selling of Automobile Dealerships and Dealers' Rights. Those books represented the culmination of over a decade of research and two years of writing and set the framework for the modern-day car dealership buy-sell.
In a career spanning over five decades, Mr. Pico and his associates have traversed some of the largest and most difficult challenges, including the work-out of one of the top 100 dealer groups that was over $40 million upside-down. (The bank overdraft alone was over $30 million.)
Advising Automobile Dealers LLC brings to the table experience and knowledge based upon the completion of over one thousand dealership transactions ranging from dealership buy-sells, employee theft, out of trust situations, estate valuations, partner disputes, divorce settlements and preparing loan requests, to being the consultant to receivers and debtors in state insolvencies and federal bankruptcies, supplying interim management and litigation support, and completing fraud investigations and asset searches.
Advising Automobile Dealers LLC could make the difference for you.
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