Discover the industry’s most trusted analysis of the buy/sell market and franchise values with Kerrigan Advisors’ Blue Sky Report®, the leading valuation publication in auto retail. The report offers exclusive insights into market trends, dealership buy/sell activity and the firm’s signature franchise blue sky multiples.
The latest edition of The Blue Sky Report® highlights the robust buy/sell activity in 2025, driven by heightened buyer demand against limited seller supply. The second quarter’s strong industry earnings, the continued resilience of the dealership business model, and renewed activity from the elimination of the CARB EV sales mandate helped drive dealership buyer confidence and lift blue sky values, in spite of some market challenges and tariff policy uncertainty.
Buy/sell transactions for the first half of 2025 were 8% higher than last year’s level, with 220 completed. For the trailing twelve months, there were 454 transactions, 104% higher than pre-pandemic averages and above last year’s record. Kerrigan Advisors predicts this elevated pace will continue for the remainder of the year, fueled by earnings growth and dealers’ access to capital.
Source: The Banks Report, Automotive News, Kerrigan Advisors’ Research
The Kerrigan Blue Sky Index, a highly-regarded barometer of industry franchise value, rose 3% in the second quarter of 2025 and now 75% above 2019 levels, reflecting renewed buyer demand, particularly for top franchises in prime markets, against limited seller supply.
Source: Kerrigan Advisors
Methodology: Benchmarked to 100 at 12/31/2019.
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