Dealerships are complex and specialized businesses, often with four or five separate departments operating autonomously. We know the intricacies of your industry and understand your opportunities and challenges. We regularly consult with dealers on a variety of issues related to ongoing operations and ownership transitions.
With dealerships, we know from experience that a basic multiple is not sufficient for determining a proper valuation. Instead, the focus should be on expected cash flow. That’s because the next five years of cash flow are unlikely to be similar to the last five years. Also, the analysis of future cash flow is consistent with the approach taken by the public automobile and truck retailers, as well as sophisticated buyers and sellers.
We have performed valuation assignments for more than 1,000 dealerships nationwide to aid in:
We can also provide valuation services when a dealer sells an individual franchise or personal goodwill assets, and we can help with new point proposals, expansion planning, and value maximization planning.
Here are a few examples of how we’ve helped our clients:
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