March 18, 2017 — Although 2016 saw a slight downturn in the number of transactions from 2015, dealership buy-sell activity the last three years has stayed fairly consistent, according to data compiled by The Banks Report. And 2017 is shaping up to be on par with the previous three years.
From 2015 to 2016, the number of transactions declined by 20 after increasing by 22 from 2014 to 2015. It’s the first decline in dealership buy-sell transactions since the recession ended five years ago.
The big year was 2014 when — fueled by sizzling vehicle sales as the auto industry rebounded strongly from the recession — the pace of dealership acquisitions jumped by 100 transactions in 2014 from 2013 totals.
The actual number of dealerships changing owners, though, tell a different story. As you will see in Figure 1 below, the number of stores involved in buy-sells spiked from 324 in 2014 to 479 in 2015 (much of that jump is due to Berkshire Hathaway’s acquisition of 81 Van Tuyl stores), and then dropped to 354 dealerships in 2016.
BY THE NUMBERS
From January 2013 (when The Banks Report began tracking dealership acquisition activity) to December 2016, more than 1,334 dealerships — approximately 7.2% of the U.S.-based 18,250 franchise stores — have changed owners in 791 different transactions.
Figure 1 — Property of The Banks Report
To read the report in its entirety, click here: http://www.thebanksreport.com/dealership-buysells/tbr-2016-report-dealership-buy-sell-activity/
About The Banks Report:
Designed for top automotive executives, dealers, industry analysts and investors who want to cut through the noise and get an accurate picture of what’s going on in the Automotive Retail space, the Banks Report is an online source that provides subscribers with daily insight into the top news stories of the day.
The Banks Report was created by Cliff Banks, an award-winning journalist with more than 20 years in the automotive retail space. As an editor of two automotive-related media companies, he built a vast network of sources ranging from CEOs to service technicians at the dealership. There’s no one better at connecting the dots and putting the news into perspective.
Become a subscriber and get access to more in-depth analysis on the dealership buy-sell market — including the industry’s most comprehensive list of acquisitions going back to January 2013.