Mergers and acquisitions firm focuses on discretion, integrity and face-to-face meetings with their dealer clients.

When it comes time to sell, a dealer principal wants to be assured he or she is dealing with a firm that understands them, will act on their behalf with discretion and integrity, while getting the maximum value for their store. Many buyers value that approach too.

Mergers and acquisitions firm Templeton Marsh says it does just that — partly because they really do understand what it’s like to be a car dealer.

Samir Akhavan, the company’s Co-Founder and Managing Partner, has been a dealer principal himself for more than two decades, and has more than 40 years experience in the auto retail industry. Akhavan bought Town and Country BMW in 1978, and in 1994 when he sold it as the Town and Country Group, it had grown to be one of Ontario’s largest auto groups.

In an interview, Akhavan said one of the things that sets his firm apart from others is their ability to keep deals confidential. “One of the things that fundamentally differentiates us is our extreme and almost paranoid insistence on discretion,” said Akhavan. “Integrity and discretion are very important to our business. It will take you 35-40 years to build a reputation and one conversation, one deal to totally screw it up. And we don’t want to do that — and we haven’t done that.”

He said if you visit the company’s website you won’t see a listing of any of the dealerships they have for sale. “The reason we don’t do that is because in my experience, dealers who are looking at potential lists can sometimes put two and two together,” he said.

That can pose a number of challenges for the selling dealer, including having other dealers call the store to try to lure key employees to their dealerships. “So by not having anyone know what we are doing, there is zero chance of poaching,” he said. “Our obsession about discretion and being tight-lipped has actually
done well for us.”

The company also doesn’t advertise when it makes a sale. “Our view is that if a selling dealer wants to let people know he’s sold, he will tell people and they’ll know. And if he wants to ride into the sunset quietly and doesn’t want to tell anyone —  then it’s not our place to tell people.”

Akhavan said before the company agrees to represent a seller, a member of their team will visit the dealership and get to know them better. This has taken Akhavan to far-flung places like Elliot Lake, North Battleford Saskatchewan, Thompson Manitoba and all parts in between.

“We will go there because that’s where our clients are, and that is where we get to meet them, get to know them and understand their business,” he said. “It is going to be difficult marketing a dealership if you’ve never seen it, if you’ve never met with your clients, if you haven’t had that personal face-to-face interaction over a cup of coffee or a hamburger.”

Once they get a feel for the opportunity, in consultation with their clients, they come up with a list of two to three buyers that they consider the best fit. “We take the deal to those buyers, and in the years that I’ve been doing this, with the exception of one deal where the OEM exercised their right of first refusal, we’ve actually closed every deal that we’ve done.”

He said that’s because the firm knows what they are doing, but more importantly they know what certain buyers are looking for. That’s because they constantly talk with them and ask them things like: Which brands fit your current portfolio? Which brands don’t? Where do you want to grow? How do you want to grow? What are you looking for in your next acquisition?

Akhavan said the smaller size of their firm allows them to customize their approach, and be a lot more nimble and able to adjust and adapt. “I take a very hands-on approach with my partners. I get involved in almost every deal.”

The firm also has a reputation for telling it like it is. “We take pride in telling our clients what needs to be said — not what they want to hear,” said Akhavan, relaying a recent story where he turned down a client’s offer to sell their store because he advised them it would be worth a lot more in a couple of years. He said when he returned home a few hours later he got a call from the dealer saying: “Samir, thank you. I appreciate the candor. I appreciate the approach you took to handling our business and our request to sell.”

Templeton Marsh has been operating across Canada for more than 12 years, and collectively their team has managed more than 100 buy/sell deals with more than $850 million dollars in total acquisition value.

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National Bank of Canada credits commitment to environmental, social and governance principles for success through the pandemic

The pandemic was instrumental in bringing out the essence of many companies, both positive and negative. For organizations that have fostered a culture of people-centric service, supporting their clients and employees through the uncertainty came naturally.

One of those organizations is National Bank of Canada. Their on-the-ground presence and a commitment to auto dealerships ensured the sustainability of their operations, without causing any disruption to established business practices in the automotive sales and financing market, says the company leadership team. 

“Even when they were temporarily closed, the dealerships had our support,” said Nathalie Laforest, Senior Manager Merchant Relations for Quebec and the Atlantic Provinces of the financial institution. “Our teams regularly made calls to inquire about needs and address any requests, offering informed solutions.” 

“The managers of partner-dealerships also observed this personalization of interactions during the pandemic, while our interaction continued to be applied in person when circumstances permitted,” said Laforest. “This strong presence allowed us to mentor new recruits hired by dealerships that experienced significant staff turnover during the pandemic.”

The company was equipped to deal with challenges even before the pandemic, as “commitment to environmental, social and governance” (ESG) criteria was implemented as an integral part of the management ethos of National Bank of Canada, says the company. 

“The bank has a team entirely dedicated to ESG objectives, which reflect a strategy of sustainable development and responsible investment, linking a company’s financial performance to its environmental and social impact,” said Christian Turcotte, Director of Retail Products and Financing Solutions, based in Montreal. Designated as a top employer by the institution that promotes diversity and inclusion in Canada, National Bank of Canada leadership says it is proud to share its mission: making a positive impact on peoples’ lives. 

“National Bank also has one of the largest business development teams in the country in consumer-goods financing,” said Laforest, “A unique dynamic that brings together many employees in the field across Canada.

“Part of our role is to develop relationships with car and RV dealerships from the Pacific to the Atlantic to promote the variety of our financial programs.” ­— Natalie Laforest

“Part of our role is to develop relationships with car and RV dealerships from the Pacific to the Atlantic to promote the variety of our financial programs,” said Laforest. “Proposals that refer to great agility and demonstrate an availability that is recognized in the industry.”

“This presence is matched by customer support where our advisors, financial analysts and disbursement specialists are accessible to dealers daily,” said Laforest. “We are known for our prompt service. We see this efficiency in the field during our regular dealership visits. Customers are pleased to be able to count on a quick response.”

These initiatives also work towards a greener economy. Committed to many UN global initiatives, National Bank joined the Net Zero Banking Alliance and is aiming for net zero emissions by 2050. These projects include waste management, greenhouse emission reduction and environmental risk prevention.

National Bank of Canada was founded in 1859 to offer financial services programs to individuals, businesses, and institutional and government organizations across Canada and around the world. As a major Canadian financial institution, it is also one of the most profitable banks in the world based on return on investment, said Turcotte.

“Socially, we want to enrich communities by maximizing the potential of individuals in the community. This notion takes into account the well-being of our employees and the community. Through sponsorships, donations and fundraising, we pursue this commitment in several initiatives across the country,” he said.

In terms of governance, National Bank primarily focuses on a robust risk management structure, says the company, targeting responsible business practices. This culture aims to promote long-lasting relationships with customers, employees, and their communities from coast to coast. It’s a policy that puts people at the heart of its actions. 

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Ontario-based DealerAI launched an AI chatbot that aims to achieve automation with customer service and provide timely, accurate, and consistent answers to consumers

Canadian auto dealer talked with Baris Akyurek, the Director of Marketing Intelligence at AutoTrader, which released first quarter 2022 research in April, which suggests consumer searches for electric vehicles are surging primarily due to soaring gas prices. This is not surprising, though interest in EVs is not constant across the country, suggests the survey of 1,000 prospective buyers.

AutoTrader research suggests gas prices and government incentives combine to drive consumer interest in electric vehicles, but where incentives are lower, there is a corresponding drop in interest. BC and Quebec lead the way in consumer online searches for electric vehicles, due to higher incentives, but for Canadians in general, 68 per cent are considering an electric vehicle for their next car, which is up five percent from last year. Two thirds of respondents cite rising fuel prices as the reason behind looking at EVs.

Xu said they can also help dealers make more deals with higher grosses, which the company is able to achieve by automating the customer experience with timely, accurate, and consistent answers in the customer’s language.

“When we look at our data, we see searches for electric vehicles specifically are up 89 per cent from last year, with a 560 per cent increase in leads to dealers,” says Akyurek, “so there’s been huge interest since gas prices have gone up.” With over 300,000 vehicles on the AutoTrader site, the average price for both new and used cars has gone up about 33 per cent since the beginning of the pandemic.

“From a demand perspective, COVID really increased interest in owning a vehicle, and this was reflected in AutoTrader searches across the country,” he says. In the Prairies and Ontario, which have only the $5,000 federal rebate for EV buyers, 30 per cent of buyers say they would need more than $10,000 in incentives to make them consider an EV over an ICE vehicle.

Of EV buyers surveyed, their number one reason for choosing an EV was high fuel prices, followed by the environmental benefits of owning a zero emission vehicle, and the number three reason  was the lower maintenance costs of owning an EV over time.

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A Canadian F&I warranty provider aims to improve the vehicle ownership experience through the chemical products it blends and manufactures.

Dealers may remember the story of an F&I warranty provider that, during the early stages of the pandemic, retooled its Scarborough assembly lines and chemical blending processes to supply hand sanitizer to dealerships, first responders, and local hospitals.

That company is Diamond Kote, a more-than-meets-the-eye provider owned by IA Financial Group, and best described as “where the rubber meets the road.” It aims to enhance the vehicle and ownership experience for consumers through the chemical products that it manufacturers.

“We’re the only Canadian manufacturer in the F&I industry that produces our own chemicals, so we have that vertical integration,” said Jill Kleovoulos, Marketing Director at iA Dealer Services-Ancillary Products. “Our detailing products, our paint protection products, our interior protection products—these are the types of services we offer to dealers.”

Kleovoulos said that enhancing the ownership experience through the company’s products, services, and warranty programs can help customer vehicles look new for a longer period of time, and it can help protect them from the high costs associated with collisions or misfortunes that can happen along the way.

Diamond Kote was founded in Vancouver, B.C. by Chuck Walker. He originally worked in dealerships in the Western regions of Canada before launching the company in 1968. In 1971, he introduced automotive extended warranty programs as part of the services offered to help cover parts missed by some of the traditional manufacturer warranty programs.

The company partnered with Toyota in 1995 and has since worked with several other OEMs—including Honda, Acura, Lexus, General Motors, and Ford. iA Financial Group acquired both Diamond Kote and parent WGI Manufacturing (which produces the chemicals) in 2020, placing it squarely under the Industrial Alliance umbrella.

The overall goal of the company is to ensure their customers have a “really great” experience, whether that means through the dealership, or during an event resulting in a chip in the windshield or a tire hitting a pothole.

That manufacturing connection is important, as Kleovoulos said one of their areas of focus is to ensure the chemical formula relations going into the products are environmentally stable. “We have a research and development team that’s trying to improve those products to make them better for the environment, and make them better for the customers as well,” she said.

The overall goal of the company is to ensure their customers have a “really great” experience, whether that means through the dealership, or during an event resulting in a chip in the windshield or a tire hitting a pothole. “We want to make sure that the customer has a really positive customer experience when it comes to the claims,” said Kleovoulos.

To dealers, her message is simple: Diamond Kote is like Amazon on the go, in that they are flexible and adaptable, which is part and parcel with being vertically integrated and having the ability to control every step of the process along the way. As Kleovoulos notes, the company does its own blending and chemical manufacturing, it has its own warehouse facilities (in Toronto, Calgary, Vancouver, and New York), and it has the ability to supply chemical products (in some of its services) within 72 hours of processing.

“We really do have good warehouse fulfillment and an operations team that does pretty good forecasting,” said Kleovoulos. “I think it’s important because, and especially now, two and a half years into COVID, we’re starting to see that supply chain really bottleneck. So we’ve been keeping on top of it to make sure that we do have enough products on our shelves to supply the dealers so that they don’t feel that pinch.”

As for what is coming up in the pipeline, Kleovoulos said Diamond Kote plans to launch two new chemical products this year: a shine refresher product meant to refresh the “brilliance” in a vehicle’s vibrancy, and a matte ceramic product that is part of a growing trend. Both products are set to launch this spring.

The post F&I’s more-than-meets-the-eye provider appeared first on Canadian Auto Dealer.

Shifting from hard-copy papers to digital files may not seem revolutionary, but one company in Ontario is striving for the dream—to streamline the entire process so dealers can go paperless.

Back in 2018, a sales manager at a luxury dealership in Toronto, Ont., wanted to go paperless after dealing with issues around things like vehicle registration and licensing forms.

Siavash Rabbani, CEO and Co-founder of Clickdocs, wanted to automate the process and allow dealerships to go paperless—or at least reduce the amount of paperwork, since the documents are typically generated from the computers in the store.

“It seems kind of archaic to print them and keep them in hard format,” said Rabbani in an interview with Canadian auto dealer. “So that’s how the idea started in 2018. My co-founder and I would get together on weekends and evenings sometimes to talk about how we could implement (some new) ideas.”

The idea to streamline the paperwork process in the sales department took form, eventually allowing the team to build on that concept and hire full-time developers. In April 2021, they officially launched Clickdocs.

The company’s solutions include an audit feature, a text/email sharing tool, an electronic garage register, an e-signature tool (DocuSign), a vehicle file, and they use the latest TLS protocols and provide each dealer with their own dedicated server.

While Rabbani recognizes that going paperless is not a new idea, as Clickdocs has competitors for each service they provide, what makes them unique is their approach to solving all of these problems—and they do that by having their employees solve each individual problem separately.

“One of the problems that we solve is storing paperwork in the cloud. Obviously, there are solutions to that—we’re not pioneers of that concept,” said Rabbani. “How we’re different in our approach comes from a dealership sales-department perspective, not as a side business.”

Siavash Rabbani, CEO and Co-founder of Clickdocs

He said the company’s approach is a “very niche” thing. A DMS for example might provide the dealership with the ability to save the documents it generates in the cloud somewhere. The login screen where employees print credit applications and submit finance applications offers the same possibility.

“But there’s no one system that takes the entire process into consideration from beginning to end with the aim and the goal to basically eliminate the paperwork,” said Rabbani.

He said the sales and paperwork process is “very backwards” in the automotive industry at the moment, and that it is “extremely” difficult for staff to do their job properly and to be compliant. The more you automate the simple things, said Rabbani, the lower the chance of audits and chargebacks from OEMs or OMVIC (the Ontario Motor Vehicle Industry Council)—or whoever the store applies to.

Trying to automate the whole process, or digitize it when there are still a few steps that require hard-copy paper, can  be difficult.

“There’s other benefits too, like funding, for example,” said Rabbani. “The more organized you are from the first step, the faster you can get your money from the bank for your deals, and in-turn the less interest you pay on your floor plans. And the benefits continue on and on.”

He said it comes down to all the small things that add up over time, such as savings and dollars, and less audits and chargebacks—and for the sales department, a better workflow that can provide a better sales experience for  the customer.

Trying to automate the whole process, or digitize it when there are still a few steps that require hard-copy paper, can be difficult. And unless all of these little things change in the market, Rabbani said dealers will always have that pushback.

“We’ve been told that going paperless is a dream. It’s never gonna happen,” said Rabbani. “But it seems like the industry is going in that direction. Banks started accepting DocuSign, and dealership staff and owners and dealer principals and general managers are slowly starting to realize that this is not something that is going to be a choice anymore. It’s just what’s going to happen.”

Asked about the company’s future plans, Rabbani said their main focus for now is more integration. After all, the more they integrate, the more they are able to automate, and the easier it will be for everyone—both on the paper front, and the compliance front.

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