(Editor's Note: Car Dealer Insider is pleased to bring back Nancy Phillips' analysis of the dealership buy/sell market. As Nancy notes, there hasn't been much to talk about for a couple of years considering the bankruptcies of General Motors, and Chrysler and the general malaise in the auto retailing industry. Nancy's Buy/Sell Benchmarks have proven to be a very popular feature in this program. The benchmarks are based on actual transactions. Only the dealership names have been omitted. We especially like Nancy's basis for valuation: Blue Sky/New Vehicle Retailed, rather than the traditional multiple of EBITDA.)
Benchmarks for Dealership Values in a Changing Industry
While I normally write this column several times a year, my pen was silenced in 2009 by the desecration of the economy and along with it - the auto retailing industry. According to Automotive News, our dealer count during that time was reduced by 9%. While I fear that will prove to be understated, the fact remains that fewer dealerships mean very bad news to some dealers and very good to others. Click here to read full article. |
