|What's Hot... What's Not
|Nancy represents franchised automobile dealers by
orchestrating dealership sales and closures for those
wishing to divest, facilitating targeted acquisitions on
behalf of buyers and determining the true market value of
their business. They have been successfully serving auto
dealers for over 25 years, with great professionalism.
|In April of 2010 we reported that the value trends we projected for Volkswagen, Subaru and
Ford have proven to be accurate. Today there is firm evidence that these particular makes
are now at the top of the list of franchises dealers should look for.
|Take another look at our data published in DealersEdge and compare it to the most current information for sales of
these franchises. The median value for the subject franchises in our first chart of 4.2% as compared to the current
median value for year-to-date transactions in 2011 of 6.2% represents a 2.0% increase in the amount of intangible
value paid as a percent of total revenues. How do we expect these values to change in the immediate future?
Regardless of the potential for more economic turmoil in our country, we believe this upward trend will continue.
Kia to our list of value increased franchises and it is increasing at an accelerated rate. These market
share surges just may be here to stay as these franchises continue to chip away at the stake once
held by the usual highly valued franchises: Honda and Toyota.
increased estimates for vehicle sales ring true, it is more likely that we will remain growth challenged
for some years to come.
|What bearing does all this have on franchise values? Consumers are wary and are looking for lower cost, better
quality, fuel economy and longevity in their vehicle purchase. All of the up and coming franchises on our list share
most of these attributes and know how to market them well.
As this relates to dealership acquisitions, if you are big – keep growing. There will be more consolidation, re-
alignment and departures along the way and larger dealers will need to continue expansion to keep competitors at
For the smaller, marginally profitable or capital impaired dealers, owning a dealership under current market
conditions might not be a good gamble for the future. Especially when you can sell now while dealerships are in
demand and get more than you could in recent years or - if you own a Volkswagen, Subaru, Hyundai or Kia
dealership - more than ever before.
Nancy Phillips Associates specializes in sales, acquisitions and evaluations of franchised automobile dealerships.
She has been successfully serving auto dealers for over 25 years with great professionalism, trustworthiness and a
personalized plan for each dealer. Contact Nancy Phillips at 603.658.0004 or e-mail firstname.lastname@example.org