Auto Dealers Expect Valuations and Profits to Increase in 2022

Key Facts

“The industry’s focus on expansion is indicative of the scale required to succeed in the current auto retail marketplace and is consistent with today’s high level of M&A activity” > > Tweet this The survey, which was fielded by Kerrigan Advisors, is designed to gauge auto dealer sentiment about the future value of their businesses, as well as their perspective on franchise valuations and acquisitions.
“The ongoing momentum in auto retail is truly extraordinary and underscored by the fact that dealers expect their profits, already up over 150%, to continue to rise,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors.
- Hyundai and Kia saw a 16-percentage point decrease in the number of dealers who expect their franchises to decline in value, versus 2020.
- The top 5 franchises projected to decrease – Infiniti, Acura, Nissan, Lincoln, and Cadillac – saw an 18-percentage point reduction in the number of dealers expecting their valuation to decline vs 2020’s survey.