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INDUSTRY ARTICLES

Kerrigan Advisors writes for many of the top periodicals in the auto retail industry.  We maintain a monthly column in Dealership Magazine, for which we written since 2007.  Kerrigan Advisors has also written articles for Driving Sales, the Texas Auto Dealers Association and NADA.

Multiple of what?

Multiples, multiples, multiples. Dealers talk about blue sky multiples, a shorthand for valuation, all the time. And, Kerrigan Advisors publishes The Blue Report™, where we discuss the recent multiples associated with each franchise. But, we all might be accused of overly fixating on this topic. Or, at least overly simplifying our [...]

By |November 18th, 2016|Industry Articles|

The (More) Important Role of the Capital Markets in Auto Retail Buy/Sells

The financial markets, and in particular bank lending, play a particularly important role in today’s buy/sell market. Certainly, macro-economic trends such as interest-rates, economic growth, and consumer confidence have always directly impacted car dealership performance. Dealerships are on the front line of the American economy and are acutely sensitive to [...]

By |September 1st, 2016|Industry Articles|

At the intersection of cars and banks

Auto loans outstanding surged by 9.6% in the 12 months till June 30, reaching an all-time high of $1.1 trillion, according to the Federal Reserve Bank of New York. Yet, curiously, in the second quarter bankers tightened auto-underwriting standards for the first time in five years, the Fed’s Senior Loan [...]

By |August 16th, 2016|Industry Articles|

Stock Market Blues: How does it affect my business?

I am regularly asked two questions from dealers:  Is the buy-sell market still strong, and have I missed the window to sell? While there is no perfect crystal ball, there is one indicator that merits strong attention – the stock market, and specifically the seven publicly traded auto retail stocks [...]

By |August 9th, 2016|Industry Articles|

The KAR Index July 2016: Slowing Industry Growth?

The Kerrigan Auto Retail Index (The KAR Index™) is composed of the seven publicly traded auto retail companies with operations focused on the U.S. market. While the auto retail industry remains highly fragmented and is influenced by thousands of small and mid-sized private dealers, the seven publicly-traded auto retail stocks [...]

By |August 4th, 2016|Industry Articles|

Incentives rise in July as leasing activity softens

With new-vehicle transaction prices climbing, automakers are ramping up incentives. In return, models are rolling over the curb at a pace that multiple analysts who sent their assessments to Auto Remarketing believe to be plateauing. One of the most relevant observations for used-car managers is what Edmunds.com noticed about new-vehicle [...]

By |August 4th, 2016|Industry Articles|

The Implications of Rising Dealership Real Estate Values

Dealership real estate is an increasingly important factor in dealership valuation. Commercial real estate prices have risen significantly in recent years, and buyers are able to gain very attractive real estate financing in today’s market. As such, real estate is becoming a very important component in getting deals done in [...]

By |June 1st, 2016|Industry Articles|

An Incredible Year in the Buy-Sell Market

2015 marked an epic year in this multi-year boom of auto retail merger and acquisition activity. The year opened with the closing of Berkshire Hathaway’s acquisition of the Van Tuyl organization, the single largest acquisition in auto retail history. And, four additional new entrants made acquisitions, marking the formal arrival of private equity and [...]

By |March 6th, 2016|Industry Articles|

Stock Market Blues: How does it affect my business?

I am regularly asked two questions from dealers: Is the buy-sell market still strong, and have I missed the window to sell? While there is no perfect crystal ball, there is one indicator that merits strong attention – the stock market, and specifically the six publicly traded auto retail stocks [...]

By |February 2nd, 2016|Industry Articles|

Planning – and Accounting – in Advance of a Sale

For dealers considering a sale, or even just thinking about one over the horizon, it’s a good idea to start planning well in advance. After all, the sale of your business is likely one of the most important transactions of your career. It is well worth the time required to [...]

By |August 1st, 2015|Industry Articles|

Major Acquisitions Skyrocket U.S. Dealership Buy/Sell Activity — Up 89% Year-Over-Year

Acquisition activity soaring; Berkshire Hathaway acquisition of Van Tuyl and Lithia acquisition of DCH push pricing expectations to record peaks, according to Q3 Kerrigan Quarterly Blue Sky Report; Kerrigan Advisors announces new private equity/family office advisory to meet evolving market needs Irvine, CA, December 2, 2014 – U.S. dealership buy/sell [...]

By |December 4th, 2014|Industry Articles|

Warren Buffett: The Face of the Future Car Dealer?

The automotive retail industry has been abuzz in recent weeks after the announcement of Warren Buffett’s acquisition of the Van Tuyl Group, and the creation of Berkshire Hathaway Automotive Group. This acquisition has the industry talking about private equity and other types of outside capital seeking dealership acquisitions. Do these [...]

By |November 28th, 2014|Industry Articles|
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