Matt Lamoureux’s Post

More than three-fourths of dealership group leaders who responded to The Presidio Group's inaugural quarterly Dealer Direction Survey showed interest in buying stores in the next 12 months — despite their overwhelming expectation for lower profits during that same period, Automotive News reported. "The majority of dealers said they're interested in growing even though the majority does see the profitability declining and [dealership] values declining," Presidio President George Karolis told the news organization. Presidio also asked dealers to rank the desirability of owning dealerships representing specific brands. Dealerships representing highly regarded Japanese brands and German luxury marques were the most coveted stores to own. Many thanks to Automotive News for sharing insights from our survey with the industry. To read the rest of AN’s article, go to: https://lnkd.in/es7_R_YM To read The Presidio Group’s new quarterly report, go to: https://lnkd.in/egcNUM4g. #ThePresidioGroup #PresidioDealerDirectionSurvey #PresidioBrandDesirabilityRankings #PresidioPerspectives #autoretail #dealers

Alan Haig shares in this Automotive News article, "Aging dealers without a succession plan and dealership groups that want to grow and have a lot of cash to invest are contributing to heightened activity in buy-sells. Recent large deals (Apple Auto sold to Ciocca Automotive and South/Vista Motors sold to Morgan Auto Group) demonstrate that demand for dealerships remains strong, and sellers are still pleased with their stores' sale prices. https://bit.ly/42Fetq9

It is an honor to have the opportunity to speak to dealers, present at auto retail conferences, and discuss auto retail trends and their impact on dealership values. One thing I am hearing more about is succession planning. Believe it or not, there are many aging dealers without what I call a "successful" succession plan. There are many who believe their children want to take over the family business, but when talking to the next-gen, they are still determining if they really do. Other owners of high-value dealerships may think there is no current need, whether it be due to age or type of ownership.

Q1 2024 outpaced any other quarter in automotive retail history in buy-sell transactions. Haig Partners reported that 151 dealerships traded hands, and 87% of those were sold to private dealers. Haig Partners predicts a busy 2024 "that could rival - or even eclipse - the number of dealership buy-sells that occurred during each of the past three years." Read more: https://lnkd.in/ePWC9cKk

The dealership buy-sell market has been red hot so far in 2024. In Q1 2024, an estimated 151 dealerships traded hands. This is the highest level of first-quarter buy-sell activity on record, surpassing the Q1 levels observed in 2021 and 2022, which kicked off the two busiest years in auto retail M&A history.

As reported in the Haig Report, more dealerships traded hands in Q1 2024 than any other first quarter in auto retail history, with an estimated 151 dealerships bought or sold. Private dealers were highly acquisitive in Q1, acquiring an estimated 131 dealerships, of which 15% were purchased from clients of Haig Partners. Publicly traded auto retailers acquired 20 domestic auto dealerships in Q1, 10x more than the same period in 2023.

When it comes to dealership M&A in 2024, owners are taking stock of the market to determine their next moves. See what our own James 'JT' Taylor has to say about the five factors shaping auto retail this year. bit.ly/3U3Ku8r

The auto retail M&A market remains active, and values are still elevated over pre-COVID levels. Consumer and manufacturer behaviors are strong variables in 2024. Check out this article to learn more about how Truist is using its expertise in auto retail to assist our dealer clients in maximizing their value.

“Auto retail consolidation is accelerating for a number of reasons. First, dealers have a record amount of capital to invest after four years of historic earnings. Since 2020, dealers on average earned 2.5 times what they earned in the prior four years before the pandemic. Those dealers who plan to stay in the business for the long-term know that scale is critical to their future success." Erin Kerrigan Kerrigan Advisors was featured in a Digital Dealer Conference & Expo article this week, discussing 2023's record-breaking buy/sell market and expectations for 2024. Read the article here: https://lnkd.in/d3yEb4GX #dealerships #blueskyvalues #buysells #mergersandacquisitions #automotive #autoretail #autonews

Carvana shares soar on upbeat forecast for core profit, retail sales: Filed under: Earnings/Financials,Used Car Buying Continue reading Carvana shares soar on upbeat forecast for core profit, retail sales Carvana shares soar on upbeat forecast for core profit, retail sales originally appeared on Autoblog on Thu, 2 May 2024 10:34:00 EDT. Please see our terms for use of feeds. Permalink |  Email this |  Comments #car #cars #awesome