TAKING OWNERSHIP
How will AEA's acquisition of BAGMA affect dealers?
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

I don't know about you, but today's news certainly came as a surprise to me.

 

The AEA buying BAGMA has apparently been in the offing for some time, delayed inevitably like everything else, by the pandemic. Negotiations have been going on behind the scenes for over a year I'm led to believe, with all arrangements being described as amicable.

 

The question now of course, is how might this change of ownership effect the dealer members of BAGMA? According to the leadership of both organisations, any changes will only be for the better.

 

Ruth Bailey, CEO of the AEA, says today that the association feels "extremely positive about future developments and advantages that could be brought by the two organisations joining forces."

 

Whilst Keith Christian, director of BAGMA says, "BAGMA’s 103-year history has always been intertwined with the AEA and whilst we represent different factions within the industry, we share a common goal in supporting the industry through both dealerships, suppliers and manufacturers."

 

I suppose when you consider it, BAGMA was always a slightly odd bedfellow for Bira. Yes, both organisations represent independent retailers, but outdoor powered machinery dealers are hardly your typical high-street stores that make up the rest of Bira. So the transition to another industry-related body does make a logical sense.

 

However, a natural reaction that dealers might have today upon hearing the news, is to wonder whether there is a conflict of interests here?

 

Is it possible for a trade association representing the dealer network to act independently and unimpeded on behalf of its members, if its parent is acting on behalf of manufacturers and suppliers? This is the question that AEA and BAGMA are going to have to convince the network of.

 

Certainly the noises coming out of the two camps today, say there is nothing for dealers to be alarmed about. Service Dealer is hearing the intention is that BAGMA will be afforded an autonomy under the AEA's ownership.

 

BAGMA believe that the relationship will in fact, allow them to be more privy to behind-the-scenes, industry manoeuvres, affording them a greater involvement in matters affecting dealers. The deal also secures them a long-term future - much more so than if they had stayed with Bira from what I've heard.

 

What will dealers think?

 

But the crucial opinion on all this, will be what their dealer members and potential members, think about the move. They will be asking themselves today, will BAGMA be able to act purely in the interests of dealers on the occasions when those interests aren't exactly in line with those of the AEA's manufacturer members?

 

I would imagine BAGMA are preparing themselves to answer some of these inevitable concerns from members.

 

As an outsider looking in, it does appear that in recent times the AEA and BAGMA have been working a lot closer together than they might have done  historically. Certainly during Ruth Bailey's tenure this very much appears to be the case. Throughout the pandemic we here at Service Dealer for example, have been holding regular conference calls with both the manufacturer side of the industry and also with dealers. During all of these sessions, both Ruth and Keith have joined us, helping out both groups where they can, with their expert, insider knowledge. From my point of view there has never been anything other than a collaborative effort, with the intention to help both sides as best they can.

 

From the two associations' points of view it is quite easy to see why this acquisition makes perfect sense. They have obvious synergies, they know exactly what the other is about, and clearly understand the industry and the members that each is serving.

 

But how the network will view it though, is the million dollar question? Will it make sense to members when the body representing your needs as a dealer, is owned by the one representing your suppliers? Not that dealers and suppliers are enemies, continually at loggerheads, of course. The partnership between the two should be mutually beneficial. But as everyone who lives in the real world knows, there are those times when the priorities do not exactly align.

 

So how do you think this new arrangement will play out? Do you believe there is potential for conflict or will it be plain sailing with fears of clashes unfounded?

 

Let us know your thoughts in the comments below.

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EDITOR'S BLOG
TAKING OWNERSHIP
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AEA BUYS BAGMA
CHARTERHOUSE TURF MACHINERY CHANGE NAME TO REDEXIM
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