Unlocking Opportunities: Key Takeaways from the Haig Report® Q3 2024

The Haig Report® Q3 2024, exclusively published by Haig Partners, continues to serve as the longest-standing resource for insights into the auto retail M&A market. Designed for dealership owners, this comprehensive report delivers the latest trends, valuation metrics, and actionable insights that are critical for those exploring a sale or seeking to understand the current worth of their business. Here, we share highlights from the report to spark discussions and provide clarity on this evolving landscape.

Market Highlights: Resilience and Opportunity in Auto Retail

The auto retail buy-sell market demonstrated remarkable resilience in Q3 2024, with trends pointing to long-term stability:

• Robust Profit Levels: Dealership profits remain 100% higher than pre-2019 levels, even as they ease from the pandemic peak.
• Active Transaction Volume: With 92 rooftops trading hands, 2024 is shaping up to be one of the most active years in buy-sell history.
• Franchise Dynamics: Variations in franchise valuations reflect shifting consumer preferences and OEM strategies, offering new avenues for buyers and sellers.

Exclusive Insights from the Haig Report®

1. Blue Sky Values Remain Elevated

Blue sky values, representing dealership goodwill, have adjusted downward by 12% from 2023 peaks. However, values still sit at approximately double pre-pandemic levels for many franchises:

• High Demand Franchises: Toyota, Lexus, and Honda lead in valuation strength.
• Emerging Opportunities: Underperforming brands like Nissan and Stellantis offer significant value for turnaround-focused buyers.

2. Buyer Trends: Private Dealers Lead

Private buyers acquired a staggering 96% of all rooftops sold in Q3 2024, showcasing their confidence in the sector's long-term growth.

• Strategic Divestitures: Large dealer groups are offloading non-core assets, enabling smaller and regional operators to expand.

3. Public Company Strategies

While public dealership groups have reduced acquisition activity in favor of share buybacks and operational optimizations, notable transactions still highlight the market’s vitality. For example, Haig Partners facilitated the sale of Duval Motor Company’s Honda, Acura, and Subaru dealerships to Lithia & Driveway, a transformative deal marking Lithia’s entry into North Florida.

4. Franchise Performance: Divergence in Value

Franchise values are increasingly differentiated:

• Top Performers: Toyota, Lexus, and Mazda maintain high valuations, driven by consistent profitability and market share.
• Challenged Brands: Stellantis and Nissan present opportunities for buyers seeking turnaround potential.

Why This Matters Now

Dealership owners are positioned at a pivotal moment:

• Sellers: Capitalize on historically strong valuations before further market normalization.
• Buyers: Leverage opportunities created by increased affordability and strategic divestitures.

With over 25 years of experience advising on $9.5 billion in transactions, Haig Partners is uniquely equipped to guide owners through these dynamics and ensure every transaction maximizes value.

Let’s Start a Conversation

The Haig Report® Q3 2024 is a must-read for dealership owners navigating today’s evolving landscape. Whether you’re considering a sale, a strategic acquisition, or simply want to understand your business’s market value, Haig Partners is here to help.

Explore the full Haig Report® Q3 2024 or contact us for a personalized consultation.

Let’s connect and discuss how we can help you achieve your goals. Share this post with your network to keep the conversation going!

Published by Haig Partners—The Leading Advisors in Maximizing Dealership Value.