Is a Harley-Davidson Dealership a Good Investment?

Is a Harley-Davidson Dealership a Good Investment?

Update: 2024-11-15
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In this episode of Acquisitions Anonymous, hosts Heather Endresen, Bill D'Alessandro, Michael Girdley, Mills Snell, and special guest Chelsea Wood from Acquisition Lab take on a unique deal—a Harley-Davidson dealership listed at $8.6 million with $2.1 million in EBITDA. 

This episode is sponsored by Connor Groce – your go-to franchise consultant, helping prospective owners choose the right franchise and avoid common pitfalls. Connect with Connor’s team or attend his Gateway to Franchise Ownership workshop by visiting the link in the show notes. Visit https://www.connorgroce.com/ for more information.

They dig into the complexities of owning a franchise dealership, Harley-Davidson’s brand challenges with shifting demographics, and whether this iconic brand can attract younger generations or if it’s a risky buy in a declining market.

Key Highlights:

- Generational Shift & Brand Image: The team explores Harley’s struggle to maintain its appeal as younger generations show less interest in motorcycles, affecting dealership sales and longevity.

- Franchise Dealership Model: Michael explains the razor-and-blade model of franchise dealerships, where profits come more from service, parts, and financing rather than new bike sales.

- Buyer Beware: Chelsea warns about the risks for inexperienced buyers, emphasizing the importance of thorough due diligence and questioning why existing franchise owners haven’t picked up this dealership.

- Industry Dynamics: Bill highlights market shifts in power sports and discusses whether Harley-Davidson’s brand has long-term durability or is facing a “falling knife” situation as sales decline.

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Is a Harley-Davidson Dealership a Good Investment?

Is a Harley-Davidson Dealership a Good Investment?

Bill D'Alessandro, Mills Snell, Heather Endresen, and Michael Girdley