Circumstances nonetheless ripe for extra auto dealership acquisitions

[ad_1]

“The offers in our pipeline point out that that is going to be nearly as good a yr by way of the variety of rooftops, however even higher by way of the worth that our shoppers are getting for his or her companies,” Haig mentioned.

And 2021 has been broadly thought of the busiest dealership acquisition yr in historical past. Automotive Information to this point has tracked at the least 376 transactions in 2021, involving at the least 693 dealerships altering palms. In 2021’s fourth quarter alone, Automotive Information to this point has tracked 149 transactions involving at the least 316 dealerships.

The deal tempo appears off to a powerful begin this yr. Automotive Information estimates at the least 52 transactions have occurred up to now in 2022’s first quarter involving at the least 78 dealerships.

“2022 is beginning out similar to the way in which 2021 was,” mentioned dealership lawyer Stephen Dietrich, a Denver-based associate with Holland & Knight who does numerous work on transactions. “It is nonetheless very lively. Sometimes, we see some form of a slowdown in January and February simply because individuals get completed with issues on the finish of the yr and so they’re recovering just a little bit.”

The start of 2022 included what Dietrich referred to as a hangover of offers that did not get completed in 2021. Because of this, the everyday lull to start out the yr did not happen, he mentioned.

“The final most likely 16, 17 months have been very, very lively,” mentioned Dietrich. “And I’d anticipate it to proceed via most likely at the least the tip of the calendar yr.”

In Automotive Information2022 Dealer Outlook Survey, 1 out each 5 of the 196 sellers and dealership managers who responded mentioned they plan to purchase dealerships in 2022. Almost 5 p.c of respondents mentioned they plan to each purchase and promote shops in 2022.

[ad_2]
Source link