AUTO RETAIL BUY-SELL ACTIVITY EXPLODES AND BLUE SKY VALUES HIT HISTORIC LEVELS
FT. LAUDERDALE, Fla., March 31, 2022 /PRNewswire/ -- Haig Partners released its Q4 2021 Haig Report, the leading industry quarterly report that tracks trends in auto retail and their impact on dealership values. The report explains how dealership profits have tripled along with demand from dealership groups that want to acquire more stores. These trends have driven record shattering blue sky values for dealerships, and all-time high levels of buy-sell activity.
Highlights from the Q4 2021 Haig Report include:
- The Chipdemic continues to create extraordinarily favorable conditions in auto retail
- The average publicly owned dealership made $6.4M in 2021, 3.1x higher than in 2019
- Over 640 dealerships traded hands in 2021, more than double the number that sold in 2019
- Public company spending on US auto acquisitions was $9B+ in 2021, 11.6x higher than the 2015-2019 average
- Public equity valuations are 35% higher than they were before the Pandemic
- Average blue sky values rose an estimated 105% from the end of 2019 and are at record-high levels
- The near to mid-term outlook for dealerships appears bright, but threats are emerging
"The auto retail industry has experienced an incredible series of events over the past 24 months. Few would have predicted that a global Pandemic would have created these excellent conditions for dealers," shared Alan Haig, President of Haig Partners. "As dealership profits were lifting skyward, the demand for dealerships also began to ignite. Public groups began aggressively buying dealerships, including large dealer groups, and many private dealers have also been in the hunt for more stores. These buyers like the returns on investment they can earn in auto retail and are bullish about the industry's future, and sellers of dealerships are enjoying unprecedented blue sky values for their stores," he continued.
For more findings from the Q4 2021 Haig Report, download it here.
About The Haig Report
The Haig Report, the leading industry quarterly report that tracks trends in auto retail and their impact on dealership values, includes data and analysis on the performance of auto dealerships, discusses noteworthy events impacting the automotive retail industry, identifies trends in the M&A market for dealerships, provides guidance on estimated value ranges for different franchises, and shares an outlook for the automotive retail buy-sell market. The Haig Report is based on data gathered from reputable public sources and interviews with leading dealer groups and dealers, bankers, lawyers, and accountants who specialize in auto retail.
About Haig Partners
Haig Partners LLC is the leading buy-sell advisor to owners of higher value retail dealerships. The team at Haig Partners has represented 20 of the Top 150 dealership groups on the Automotive News Top 150 list, more than any other buy-sell advisory firm. They have advised on the purchase or sale of more than 560 dealerships totaling $8.5 billion. Haig Partners has unmatched auto retail experience with backgrounds in executive leadership and corporate development roles for AutoNation, Asbury, Bank of America's Dealer Financial Services team, and DHG's Dealership Practice. Haig Partners authors the Haig Report, the leading industry quarterly report that tracks trends in auto retail and their impact on dealership values, and are co-author of NADA's Guide, "Buying and Selling a Dealership." For more information, visit www.haigpartners.com.
Press Contact:
Aimee Allen
Haig Partners
Director of Marketing and Business Development
[email protected]
SOURCE Haig Partners
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