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.
Highlights from Kerrigan Advisors' Third Quarter 2025 Blue Sky Report® 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. With continued strength in dealership earnings and improved affordability driving solid new vehicle demand, buyers are leaning in and focused on tuck-in acquisitions in the pursuit of regional scale.
Buy/sell transactions are on pace to hit a new record in 2025, up significantly from 2019. Kerrigan Advisors predicts this elevated pace will continue for the remainder of the year, fueled by earnings growth and dealers’ access to capital. With consolidation accelerating, 2025 will likely reach another high for the buy/sell market and another low for dealer count, as industry ownership becomes more concentrated.
Source: The Banks Report, Automotive News, Kerrigan Advisors’ Research
The Kerrigan Blue Sky Index, a highly-regarded barometer of industry franchise value, is on the rise in 2025, reflecting renewed buyer demand and greater clarity in blue sky pricing. It should be noted that while the average blue sky remains 76% higher than the pre-pandemic period, a greater divergence and variability have emerged from the mean, with certain franchises achieving record valuations (Toyota and Lexus) while others see valuations decline below pre-pandemic levels (Nissan and Infiniti).
Source: Kerrigan Advisors
Methodology: Benchmarked to 100 at 12/31/2019.
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