Major Acquisitions Skyrocket U.S. Dealership Buy/Sell Activity – Up 89% Year-Over-Year, from Business Wire.
Acquisition activity soaring; Berkshire Hathaway acquisition of Van Tuyl and Lithia acquisition of DCH push pricing expectations to record peaks, according to Q3 Kerrigan Quarterly Blue Sky Report;
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U.S. dealership buy/sell activity hit new highs in the first three quarters of 2014, soaring to an 89% increase year-over-year, according to the just released Kerrigan Quarterly Blue Sky Report for Q3 2014. The report, produced by Kerrigan Advisors, is the auto industry’s most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.
According to the Q3 report, which covers activity through October 1st, 2014, the entry into the market of new players has driven price expectations to record peaks, most notably influenced by Berkshire Hathaway’s acquisition of Van Tuyl, the largest acquisition in the auto industry’s history. The report also noted that the completion of Lithia’s acquisition of DCH has had a significant impact on blue sky valuations.
“These two mega deals have motivated a new wave of sellers to consider entering the market, while also pushing pricing expectations to peak – and likely unsustainable – levels,” said Erin Kerrigan, founder and managing director of Kerrigan Advisors. “In addition, they are inspiring a new class of capital – private equity and family offices – to acquire dealerships.”