Honda of Downtown LA
We were appointed receiver of the franchised dealership in 2011. The dealership was over $7M out of trust leading to the motion to appoint a receiver. The team operated the dealership for approximately 8 months and ultimately sold the dealership for a significant amount of goodwill given the lack of historical profitability and out of trust condition.
The team cut the operating expenses to minimize the losses while marketing the dealership based on the projected sales volume and composite financial metrics of Honda in the region, rather than the dismal historical performance of the dealership. This led to a sale price with a meaningful goodwill component.
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