By Garry Bartecki
Last month, we covered performance gaps and how to avoid them because if you cannot prevent them, there is a very high percentage that the company’s value will be less than it is today.
Even though management would like to avoid performance gaps, doing so is a significant cost. And who wants to invest $100,000 + to do the “fix” and then find out it will not work as intended, which includes a negative return on the initial investment, which depletes company value?
I believe the performance caps will provide a negative return on investment, so it was suggested that dealers planning to sell within ten years may want to do so now and avoid both the performance gap and the potential negative technology investments.
I am mentioning this again because I am finding additional issues and problems, and opportunities that will cause dealers to rethink how they will be doing business five years from now and how the dealer revenue silos cash flows could change from what they are today.