|Average Dealership Pre-Tax Profits (source:NADA)|
The value of public dealerships’ acquisitions climbed 16.5 percent from 2012 levels while the number of private transactions rose 14 percent, according to The Blue Sky Report from Haig Partners LLC.
The buy-sell market will remain robust, according to Haig, for several reasons:
- Private buyers are very active and interested in both single-point stores and larger groups.
- With one exception, every public retailer has publicly expressed a desire to grow through meaningful acquisitions.
- Many dealership groups have the capacity to make commitments of $100 million or more, with several capable of $500 million deals.
- The range of attractive brands is broad: the 10 largest dealer groups acquired 16 different franchises in 2013.
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