The retail side of the farm equipment business will need to undergo a significant transition on how it has traditionally viewed the skillset required to manage a dealership. The rapid consolidation of dealerships has already forced a paradigm shift from a “manager” model to a “leader” model with the biggest dealer groups. But that transformation will also need to take place with the smaller dealer groups — those in the 1-5 store category — if they hope to profitably compete in this increasingly demanding business.

Farm equipment dealers who are looking to establish a succession plan for their companies to ensure their dealerships remain viable business entities, whether or not they remain at the helm of the company, are taking a close look at the potential role that an Employee Stock Ownership Plan (ESOP) could play in the process.