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Harley-Davidson allowing private equity to invest in dealerships: report

An article by The Motley Fool titled “Harley-Davidson Invites Wall Street Into Its Dealership” reports that Harley-Davidson has reversed a previous mandate that “prohibited private equity firms from owning its dealerships.”

The report also notes that in a December webinar to dealers, “Harley-Davidson revealed that not only can a dealer buy as many as 10 dealerships now [up from a previous limit of 6 and still required to be in the top 33 percent for dealership performance to be considered], but private equity will also be able to invest in dealerships.”

The article goes on to say “that’s a significant change, because it means that individuals no longer need to be majority owners, and the owner no longer has to be on site at the dealership.”

Read the story here.

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