Automotive News Updates

Sellers anticipate acquisitions to proceed, survey finds

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Regardless of considerations about electrical autos and Tesla’s rising market share, dealership earnings and money circulate are excessive, boosting confidence in the way forward for retailing, Erin Kerrigan, managing director of Kerrigan Advisors, a sell-side agency in Irvine, Calif., instructed Automotive Information.

“The sellers are making more cash than they’ve — frankly many have shared with us [it’s more] than they ever imagined they’d in a single yr,” Kerrigan mentioned. “And the overwhelming majority plan to speculate these {dollars} in additional acquisitions, not taking this second to say, ‘OK, I’ll promote as a result of I am at peak earnings,’ however reasonably I’ll pour these earnings again into this trade.”

Kerrigan Advisors, in one other report, mentioned the typical blue-sky worth — or the intangible worth of a dealership, together with goodwill — hit a report $9.1 million within the second quarter. That topped the earlier excessive of $8.5 million reached within the first quarter, Kerrigan Advisors mentioned.


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