As the automotive industry continues to evolve and change and there are a number of trends emerging which impact dealership values, some of our key observations are as follows:
In the past two and a half years (since Q4 2019), we have experienced the following:
Thanks to current high and estimated future profits, there are many dealer groups and investors looking to acquire dealerships. Automotive dealerships have proven to be excellent investments in both good and bad economic times.
Dealerships in Australia are typically valued at goodwill plus net tangible assets to arrive at their enterprise value. The goodwill component is usually calculated as a multiple of earnings, or NPBT.
Stephen in an M&A and due diligence expert, having built a wealth of experience over his time at Pitcher Partners on both buy side and sell side M&A, and various due diligence engagements, and for clients ranging from private business owners, private equity and multinational corporations. This experience allows him to bring a clear understanding […]
We are delighted to have released the first iteration of the Australian Listed Dealer Comparison and it reveals that it is a very interesting time to be a part of the motor industry.
The Government has introduced a Bill to provide an exemption from Fringe Benefits Tax (“FBT”) for a car fringe benefit attributable to an eligible low or zero emission car. The exemption is intended to encourage a greater take up of fuel-efficient cars and reduce Australia’s carbon emissions.
The Dealership world is currently sitting on the precipice of a monumental change from which there is no known white knight. The solution to the problem exists, but it requires the dealers to take the initiative and kill a major sacred cow in the process.
Record profits for dealers are likely to last into next year as OEMs catch up with lost sales DEALERS in the United States, as in Australia, are enjoying the best trading conditions ever recorded and are looking forward to fulfilling the annual sales forecast for the US trending at 17 million units, mostly at full […]
Leading industry analyst updates his crystal ball gazing and sees ongoing roles for dealers GLENN Mercer, the independent automotive analyst retained by the National Automobile Dealers Association to write his definitive work on the future of car retailing, Dealership of Tomorrow, presented an update that held out the prospect that dealers do indeed have a key […]
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