SAN FRANCISCO--(BUSINESS WIRE)--The number of automotive dealerships sold to private buyers climbed more than 2.5 times in the first half of 2013 compared to a year ago, while the value of U.S. acquisitions by public retailers rose 8%, according to the mid-year Automotive Retail Buy-Sell Report from The Presidio Group LLC.
“The window is wide open for dealers who are interested in retiring and/or selling their businesses”
“The window is wide open for dealers who are interested in retiring and/or selling their businesses,” said Alan Haig, Head of Automotive Services at Presidio Merchant Partners LLC, the investment banking arm of The Presidio Group. “Dealership values are high because profits are strong and there are more buyers than sellers in the market today. We’re also seeing more deals done at higher prices. Transaction values of $50M or more used to be pretty rare, but now there is greater interest in deals of this size from both public and private dealership groups. In fact, private groups may be the most aggressive buyers at this time.”
According to The Presidio Group, several factors are driving the increased activity: dealer profits are at or near at all-time highs; almost every franchise is desirable compared to prior years when many were declining; dealership acquisitions provide stronger rates of return than other investments for buyers; and the demand for franchises exceeds the number of interested sellers.
The current Automotive Retail Buy-Sell Report updates the Presidio Multiples, a widely-followed estimate of dealership blue sky valuation ranges. The Presidio Multiples for Audi, Subaru, Chrysler-Jeep-Dodge-Ram, Ford, Chevrolet, and Buick-GMC were raised, and lowered for Hyundai, VW, and Mazda.
About The Presidio Group LLC. The Presidio Group LLC is a personal and corporate financial services firm with approximately $4 billion in client assets. Through its interconnected investment banking, private equity, and wealth advisory units, Presidio is uniquely capable of addressing the lifecycle challenges of wealth from its creation, through its retention and growth, to its transfer to successive generations. The firm’s principals have extensive experience running businesses, creating wealth of their own, and understanding and managing risk. Presidio and its subsidiaries currently serve clients throughout the United States, through its professionals in San Francisco, Dallas, Newport Beach and Fort Lauderdale. Presidio Merchant Partners LLC is a member of FINRA and SIPC. For more information on Presidio’s auto retail practice, visit www.presidioautomotive.com.