Automotive buy/sell market flourishes in Q1 despite economic concerns

According to the recently issued Kerrigan Advisors Blue Sky Report®, the auto dealership buy/sell market is off to a strong start in the first quarter of 2022, outperforming the first quarter of 2021.

72 dealership buy/sell transactions were reported in the first quarter resulting in a twelve-month record of 389 transactions (ending March 2022), representing 829 franchisees.

Average dealership blue sky values soared to a new high of $11.5 million during the quarter, up 4.6% from the end of 2021. Growth in quarterly dealership earnings topped the first quarter of 2021 by an estimated 27% as well.

Despite probable economic headwinds, Kerrigan Advisors anticipates a very active year for the buy/sell market in 2022, with high values limited only by the number of available dealerships for sale and supported by a highly successful auto retail industry.

“It was another extraordinary quarter for the buy/sell market, even in the face of turmoil in the financial markets,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors in a recent press release. “If this transaction pace continues, nearly every dealership in the US would trade hands in the next 20 years, leading to fewer single point dealers and a much higher concentration of vehicle sales amongst the leading consolidators.”

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