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Porsche still leads in auto dealership multiples

The value of a dollar of earnings of an automobile dealership is dramatically affected by the franchise that is generating those earnings.

Valuing closely held automobile dealerships using public dealership acquisitions

The acquisition of closely held automobile dealerships by publicly traded dealership groups can provide a basis for analyzing the value of the single-point or multi-point dealership. Valuation analyst ...

What’s an auto dealership worth? Explore the four primary value drivers

From a business valuation perspective, automobile dealerships are different from other commercial businesses. In fact, the unique nature of the car-buying experience is only one of many unique aspects that make it tough for owners to answer the common question, “what is my car dealership worth?” To provide a road map for owners who may be considering selling their dealership and for the business appraisers tasked with valuing them, BVR asked experts to identify the top factors that impact the value of new car dealerships.

Auto Dealerships are Running Hot: Key Valuation Metrics Unique to Auto Deal

Providing a valuation of a business can be a complex process as there are a variety of intricacies that help determine the value. Automobile dealership valuations are a bit more complex because they have unique characteristics that set them apart from other businesses and industries. They involve a deep understanding of the automotive retail industry which includes items such as factory financial statements, franchise multiples, and operational benchmarks of the dealership, to name a few.

New What It’s Worth guide to valuing automobile dealers

The latest in the new series of What It’s Worth guides brings you the expert insight you need to understand and value automobile dealers.

New resource for auto dealership valuations

At the AICPA Forensic & Valuation Services Conference in New Orleans, Timothy W. York (Dixon Hughes Goodman LLP) mentioned a new resource for experts valuing automobile dealerships.

Impact of VW settlements on dealer valuations is uncertain

How the Volkswagen settlements over its diesel emissions cheating scandal will affect VW dealership values depends on how the settlements affect dealership profits.

Auto dealership values driving higher—for now

Values of auto dealerships jumped last year amid a surge of buy-sell transactions, according to “The Blue Sky Report™ 2015 Full Year Report.”

Auto Dealership Value Special Report Excerpt

Book Excerpts

What It’s Worth: Auto Dealership Value (formerly Key Trends Driving Auto Dealership Value) provides you with wisdom from numerous experts who work with auto dealerships and study the valuation issues associated with this industry daily.

The Impact of Real Estate on the Valuation of an Auto Dealership

The status of the dealer’s real estate can significantly affect the valuation of an automobile dealership. Aside from inventory, real estate is often an auto dealership’s largest asset. Depending on how the real estate is recorded in the dealership’s fina ...

Failure to Value Goodwill Was Error, Minority Discount Affirmed

The issue in this case was the valuation of wife's 10.5% interest in her family's auto dealership, which she had received as a gift. Wife also held an interest in the capital account of the ...

High Court Approves of Trial Court’s Rejection of Discounts in Fair Value Determination

In buyout dispute related to various family businesses, including auto dealership, high court finds trial court was authorized to adjust value finding to account for majority shareholder’s oppressive conduct; case law supported rejection of discounts in valuing minority shareholder’s interest.

Latest Trends That Affect Auto Dealership Valuations

In some respects, automobile dealerships are different than other traditional industries. When the industry is in its “up cycle,” dealerships often sell at numbers that make the rates of return difficult to justify in a traditional income approach. Often ...

Business Owners

Business Owners | Business Valuation Resources Search . Business OwnersWhat is your business worth? You know it is the most important financial question you will ask. For private company owners, it can also be the most difficult question to answer. Replace your assumptions with hard numbers and real comparables. As the market leader in private company sales transaction data, BVR can help you with data on what businesses in your industry are actually selling for,

Auto dealerships: still driving the U.S. economy

“Auto sales account for the largest segment of our retail economy—over 22 percent—and dealerships employ more than one million people nationwide,” according to Dale Willey.

Damages Based on Inconsistent Testimony

Kraatz sued Heritage Imports for wrongful termination.

Letter to the Editor: Comments on Using Jensen’s Alpha for Active and Passive Appreciation

This is a Letter to the Editor from Ashok B. Abbott, Ph.D. (West Virginia University), in response to a prior article on segregating passive from active increases in the value of an asset in the context of marital dissolution.

The Current Auto Dealer Acquisition Environment and Its Impact on Blue Sky

New automobile dealership acquisitions were lower in 2012 as compared to the steady deal flow in 2010 and 2011. Although this news comes as a surprise to industry insiders, their consensus is that acquisitions stalled in 2012 because buyers and sellers si ...

Industry Snapshot: Automobile Dealers

An at-a-glance overview and update on current trends, value drivers, and valuation approaches in the complex world of automobile dealerships.

Valuing Auto Dealers in a Tough Economy

Economic and industry factors could hardly be more negative for the auto industry. With gas prices hovering around $4 per gallon, U.S. manufacturers teetering, and inflation forcing auto prices ever higher, auto dealers are seeing declining demand for new ...

Valuing Automobile Dealerships

Valuing Automobile Dealerships By Tony L. Argiz, CPA, CVA, CFE Auto dealership industry expert Managing Stockholder Morrison, Brown, Argiz & Company, CPA Miami, Florida (305) 373-5500 targiz@mba-cpa.com Retail Automotive Industry Size 1998: • Total dealership dollar sales - $533.6 billion • New light-duty vehicle sales - 15.6 million units • Total dealership employment - 1,062,800 persons • Total dealership payroll - $39.7 billion • Total number of new-car dealerships - 22,400 Source: NADA Industry Analysis ...

Automotive Dealership Valuation—Navigating the Obstacles

Automotive dealerships are unlike any other business model. Dealerships are unique in how they are capitalized, how they trade, in their relationship with suppliers, and in their franchise rights. And your valuation approach must be just as specialized. Drill down into the specific elements of a dealership valuation with expert Travis Flenniken as he uses detailed case studies to teach specific methodology adjustments every auto appraiser needs to know. Get a grasp on unique practices ...

Tax Court Denies Amortization of Lion's Share of Employment Agreement and Noncompete Payments

The Totem Lake dealerships of Kirkland, Wash., while under the ownership of Mr. Wright, experienced a great deal of negative publicity which resulted in sustained financial losses for 1986 and 1987.

Auto Dealership Valuation and Damages: Under the Hood (A BVR Web Workshop)

For BVR's first workshop of the year, experts Adam Lawyer, Robert Davis, Stephen Dietrich, and Joseph Roesner put the pedal to the metal on what you need to know about valuing auto dealerships. Participants will get a top-of-the-line understanding of the different dealership models and the industry as a whole. Why should you attend? —Practical tips and advice: Join our auto industry expert panel to get current and practical tips for your next auto dealership valuation; —Valuation ...