Dealership Buy-Sells Keep Going Up
First-half transactions reflect continued high appetite for acquisitions despite falling profits, the most sought-after franchises bringing record prices.

Publicly held auto groups’ store purchase prices so far this year have reached a record $119 million each.
Pexels/Tima Miroshnichenko
Despite all kinds of unknowns in the economy and on the geopolitical scene, or maybe partly because of them, the sale of auto dealerships continues on the upswing.
Buy-sell activity on a trailing 12-month basis exceeded that of a year earlier, according to sell-side broker Kerrigan Advisors, which said it sees no reason for a pullback for the rest of the year.
The firm recorded 224 dealership transactions in the first half, up 2% year-over-year and 107% above the prepandemic average, the firm said.
Dealerships are also commanding ever-higher prices, publicly held auto groups’ purchase prices so far this year reaching a record $119 million per store.
On the high end of the buy-sell scale, Kerrigan pointed out the offer by Penske Corp. and Mitsui & Co. to take Penske Automotive Group private, which it said would set another industry record with group value of $13.8 billion.
The robust activity and high transaction prices contrast with declining dealership profits. In the first half, Kerrigan calculated that average store earnings fell up to 20% from a year earlier depending on the franchise and market.
The decline came on increased operating costs and falling vehicle gross margins, even as average revenue was up to a record $38 million, the firm said.
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