Buy-sell expert advises to weigh likelihood of successorship with current high values and potential returns of staying in the gam
For Canadian car dealers, there might never be a better time to sell. Franchise values are high and buyers with fat wallets are plentiful.
But the high yearly earnings that make so many dealerships ripe targets for purchase could be ac compelling reason for an owner to stay on, says dealership buy-sell expert Erin Kerrigan, even if it means accepting a lower sales price down the road.
Most dealers appear to understand this, despite fears of a sales downturn, the disruptive effects of autonomous transportation and a blossing ride-hailing lifestyle that’s offsetting traditional ownership, said the head of U.S.-based Kerrigan Advisors.
“One thing for sure, there are fewer sellers in Canada than there are buyers,” Kerrigan told the Automotive News Canada Congress.
In a changing industry, the long view should pay off.
“Smart sellers are looking to the future to determine if today is the right time for their family to exit, while astute buyers are studying changes expected in the market to identify the best place to invest. In both cases it is all about the future, rather than the present.”
Canadian sellers should expect more interest from American buyers taking advantage of the stronger U.S. dollar, she said. But at the same time, lower prices for U.S. dealerships have Canadian groups looking south. Kerrigan said she was working on two U.S. sales to Canadian buyers.
Other trends she noted:
Kerrigan Advisors is honored to work with auto retailers throughout the US to enhance the value of their enterprise. Learn more about our services below:
Customized and confidential sell-side services for higher value dealerships and dealership groups nationwide, with a proven record of achieving the highest sale price per transaction of any firm in the industry.
Capital raising and partnership structuring for growing dealership groups, supported by the largest investor database in the industry.
If you are a buyer in today’s market, Kerrigan Advisors welcomes the opportunity to learn about your acquisition criteria and include you in Kerrigan Advisors’ proprietary Buyer Database.
We welcome the chance to learn more about your acquisition criteria so that we can contact you in the event a client matches your investment profile.
Contact us to learn more about Kerrigan Advisors’ client services, or to have a conversation about the buy/sell market. All of our conversations are 100% confidential.