The Best Dealership Transactions Begin with a Relationship

More than eight years ago, I met two dealers on the same day while visiting the Cleveland, Ohio market: Eric Kempthorn of Kempthorn Motors and Joey Huang of Great Lakes Auto Group.

At the time, they were simply two people I was fortunate enough to meet while doing business in the market. None of us could have imagined that years later I would help bring their families together for one of the most meaningful transactions of my career.

My relationship with Eric and the Kempthorn family continued to develop over the years. I came to understand not only their dealerships, but also their values, their history, and what the family had built over generations.

During our eight-plus years together, I had the privilege of advising the Kempthorns through three separate buy-sell transactions involving seven franchises and two collision centers. Each transaction presented its own challenges and required careful planning, sound judgment, and the cooperation of many people.

The final transaction involved selling the family’s Mercedes-Benz, Volvo, Mazda, and Volkswagen dealerships to Joey and Great Lakes Auto Group.

As I reflected after the closing:

“After more than eight years advising Eric Kempthorn and the Kempthorn family, this transaction was especially meaningful to me. This final transaction felt like much more than the sale of a dealership—it was the transition of a family business and its legacy from one family to another.”

—David Melton, President of David Melton Advisors

That distinction matters.

A dealership is rarely just another business owned by the person whose name appears on the documents. It may represent decades of work, family sacrifice, longtime employees, customer relationships, community involvement, and a significant portion of the family’s financial security.

For the buyer, the transaction is also about more than acquiring additional franchises. The buyer accepts responsibility for the employees, customers, facilities, and reputation established by the previous owner. Bringing the right buyer and seller together requires understanding what matters to both families—not simply negotiating a purchase price.

After the transaction closed, Eric shared the following:

“It was obvious from the beginning that this wasn’t your ‘first rodeo,’ and I can’t thank you enough for your leadership and professionalism throughout the transaction.

“So often, egos get in the way of these transactions, and that was never a concern, as you demonstrated a common-sense approach and kept everyone grounded and on task.

“We have now used you for three buy-sells and would never consider using anyone else. We will always be mindful of what a blessing you have been for our family.”

—Eric Kempthorn, President, Kempthorn Motors

Those words mean a great deal to me. Completing a transaction is important, but earning a family’s trust through three separate buy-sells is something I value even more.

Joey also described the experience from the buyer’s perspective:

“This was one of our best buy-sell experiences, and the biggest reason is David Melton. He is a person full of experience and wisdom, with years of putting wonderful families together.

“I’m thankful that the Kempthorns and David Melton chose us. We are grateful to be part of the Mercedes-Benz, Volvo, Mazda, and Volkswagen families.”

—Joey Huang, President, Great Lakes Auto Group

A successful buy-sell should leave both parties feeling they were treated fairly and professionally. Difficult issues, changing circumstances, and moments when competing interests could push a transaction off course will always come up. Experience helps, but so do patience, perspective, and the ability to keep everyone focused on the larger objective.

Looking back, it is still ironic that I met Eric and Joey on the same day. A relationship that began with two separate introductions eventually helped create the foundation for a transaction neither family could have anticipated at the time.

It reinforced something I have learned repeatedly throughout my career: the best dealership transactions rarely begin when a dealership is officially placed on the market.

They begin years earlier—with a relationship, a confidential conversation, and a willingness to listen.