Midwest Brokerage

Midwest Brokerage

Automotive Dealership Acquisitions


What Happens If The Factory Exercises Their Right Of First Refusal?

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Once the Buy/Sell has been executed and forwarded to the manufacturer for approval, the process will normally take about 60 days. During this period the manufacturer may choose to reject the proposed Buyer and exercise their Right of First Refusal. In this instance they normally assign this right to a preferred candidate who must fulfill all terms and conditions of the original Buy/Sell Agreement. The Seller ends up with the same proceeds as he would from the original Buy/Sell and there is no longer any doubt as to whether or not the Candidate will be approved.