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Dealerships are the New Investment Darlings of Wall Street & Each Other
2015-01-30 19:38:15| AutomotiveDigest.com - Automotive Industry News
The Situation: The number of deals involving the sale or acquisition of U.S. automotive dealerships doubled in 2014 to over 200. How do we know? Listening, watching, and connecting with Erin Kerrigan of Kerrigan Advisors. To see for yourself, start HERE by checking out her comprehensive presentation at the J D Power Summit in San Francisco last week. What seems to be the characteristics of a Dealership Sale? * Lots of Negotiation * Not easy to get a deal done * Approval of the manufacturer franchisor takes as long as two month * The volume of sale transactions is robust and deals are increasing What is triggering all this interest and investment? * Dealer Sales are booming -- but may leveling off in 2015 * The average dealership made $1 Million in profit in 2014 * 92% of the dealerships are still in private hands of aging patriarchs * Warren Buffett bought VanTyl; Lithia bought DCH * Average dealership has double in value in the last 10 years to $36M * One in five dealership were sold or in process in 2014 * Low cost money is available to make any deal a consideration * Deals can be structured to handle a lot of Blue Sky GET MORE DETAILS. _________________________________________________________________ The Article Dealerships are the New Investment Darlings of Wall Street & Each Other appeared first on Automotive Digest.
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Category:Automotive