At some point, all our members will deal with the transfer of ownership or transfer of stock, regardless of the organization’s size.

In both Iowa and Nebraska, there is a state law that outlines the process to transfer ownership/stock to the buying individual or entity.

This process involves the manufacturer or manufacturers, as the new contract must be approved to represent those brands with the new owner or ownership group. Below are the laws for both states concerning the transfer of ownership for all Agriculture, Construction, and Outdoor Power dealers, and the process.


322F.5A TRANSFER OF DEALERSHIP – IOWA LAW

  1. If a supplier has contractual authority to approve or deny a request for a sale or transfer of a dealer’s business or an equity ownership interest in the business, the supplier shall approve or deny the request within sixty days after receiving a written request from the dealer. If the supplier has not approved or denied the request within the sixty-day period, the request shall be deemed approved. The dealer’s request shall include reasonable financial information, personal background information, character references, and work histories for each acquiring person.
  2. If a supplier denies a request made pursuant to this section, the supplier shall provide the dealer with a written notice of the denial that states the reasons for the denial. A supplier may only deny a request based on the failure of a proposed transferee to meet the reasonable requirements consistently imposed by the supplier in determining whether to approve a transfer or a new dealership.

NEBRASKA STATUTE, 87-705. DEALER AGREEMENT; TERMINATE, CANCEL, OR NOT RENEW; NOTICE; SALE OR TRANSFER; DUTIES OF SUPPLIER.

(1) A supplier shall be deemed to have good cause to terminate, cancel, or not renew a dealer agreement when a dealer:

(a) Has transferred a controlling interest in the dealership without the supplier’s consent; …

(3) If a supplier has contractual authority to approve or deny a request for a sale or transfer of a dealership or an equity ownership interest in a dealership, the supplier shall not unreasonably deny such request. The dealer’s request shall be sent by certified mail and shall include reasonable financial information, personal background information, character references, and work histories for each acquiring person. The approval or denial of a request made pursuant to this subsection shall be made in writing and sent by certified mail within sixty days after receipt of the request. If the supplier has not approved or denied the request within the sixty-day period, the request is deemed approved. If a supplier denies a request made pursuant to this subsection, the supplier shall provide the dealer with a written notice of such denial that states the reasons for denial.

If you have any questions regarding transfer of ownership and the process to be followed in either state, please reach out to Phil Erdman (phile@ineda.com) or Jamie Mertz (jamiem@ineda.com) and we will help answer questions or give guidance to this process.