Since the AutoTrader.com announcement to purchase VinSolutions in mid May, I have been polling dealers and industry leaders on their perspective of the acquisition.
Some have said that the consolidation wave in our industry was started when ADP decided to purchase Cobalt. Some commented that this acquisition marked a new push to provide more value to dealers while other were unsure of what the future would hold.
The commentary that I did not hear is that Autotrader’s buying spree may not deliver anything more significant than an attractive package to roll-up into an IPO. Could Chip Perry be more focused on creating a shiny IPO apple rather than delivering real value and integration for dealers?
The jury of the automotive community is divided.
If you have not been watching the financial news lately, there is a strong uptick in initial public offerings (IPO). In fact some have said that the market has IPO fever once again.