You want to sell your branded dealership? Then it's good to know what the takeover market looks like in terms of brand dealerships. For several years in a row, auto dealers have been subject to acquisitions and mergers. Electric cars are breaking through and lease requests are shooting through the roof.
Brand dealers deal in new and used cars of well-known car brands. Reliable quality and innovation ensures that fewer and fewer defects occur. As a result, maintenance and repairs are declining, which can pose a significant risk to brand dealers. It makes sense to seek cooperation.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In automotive, the sector to which a brand dealership belongs, an indicative EBITDA multiple range of 3.8 to 4.5 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the Automotive, Transport & Logistics sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Automotive, Transport & Logistics. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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In figures, the number of brand dealers in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer brand dealers many growth and acquisition opportunities:
Rabobank predicts a decline in new car sales due to societal changes. We travel less, live more consciously and sharing concepts are popping up more and more often. Owning a car is less and less often a prerequisite for a pleasant life.
The quality of cars is increasing and consumers are driving fewer miles on average, leading to overcapacity among dealers. The number of branches among brand dealers is decreasing, as there is an increasing number of consolidations among car dealers.
Selling through digital channels is on the rise and this is also an attractive market for the automotive industry, according to Rabobank. The younger generations are doing their research and know what they want, so even something as pricey as a car, is being bought online. As a brand dealer, invest in quality photography, findability and modern technology like VR.
According to ABN Amro, as well as Business Insider, private leasing is on the rise. On the one hand, this is a great opportunity for brand dealers, but on the other hand, it also means less maintenance. This keeps margins relatively low and makes it necessary for brand dealers to look for other revenue models.
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