At the 2026 NADA Show in Las Vegas, CBT News Co-Founder Jim Fitzpatrick catches up with Erin Kerrigan, Founder and Managing Partner of Kerrigan Advisors, to examine how geography, franchise strength, and global competitive pressures are shaping dealership valuations and investment decisions across the industry.
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Key Takeaways:
- Kerrigan notes that dealership performance and transaction activity are increasingly influenced by geography and brand alignment rather than the broad market lift seen during the pandemic years. Population growth and business-friendly climates continue to drive transaction volume in the southern United States, while consolidation remains strong nationwide as existing dealer groups expand within markets where they already operate. With more buyers than sellers still active, dealership valuations remain elevated, creating favorable conditions for owners considering an exit.
- Franchise demand also remains uneven across the industry. Toyota and Lexus continue to lead buyer interest, while luxury brands broadly attract strong investor demand due to scarcity, stronger margins, and perceived insulation from lower-cost global competition. Brands such as Mercedes-Benz are seeing renewed optimism following strategic shifts, while other franchises face transitional challenges tied to product strategy, market confidence, or dealer relations. Kerrigan emphasizes that investors increasingly weigh long-term competitive dynamics when assessing acquisitions.
- Looking ahead, Kerrigan warns that global competitive pressures, particularly from rapidly expanding Chinese automakers, will eventually influence dealership valuations in North America. Although Chinese brands are not yet present in the U.S. market, their rapid global expansion is already affecting legacy manufacturers’ profitability abroad. As dealership acquisitions are long-term investments, buyers are factoring these structural shifts into current valuations and portfolio decisions even while today’s market conditions remain favorable for sellers.
Catch all of CBT News’ coverage of the 2026 NADA Show here.
