Every quarter, dealership owners eagerly await the latest blue sky multiple reports from Haig Partners and Kerrigan Advisors. These reports have become an important benchmark for buyers, sellers, lenders, and valuation professionals because they summarize recent buy-sell activity and provide valuable context regarding the current dealership market.

But published blue sky multiples only answer part of the valuation question. The Haig and Kerrigan multiples summarize prices observed in recent transactions and discussions with other industry participants. They do not necessarily explain why buyers favor one franchise over another or how those preferences may evolve. To answer that question, it helps to supplement these reports with additional industry research that examines product pipelines, dealer sentiment, acquisition appetite, and brand momentum.

Credit: MERCER CAPITAL

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