Digital Dealer - January 2019 - 18
D E A L E R OP S & M ANAGEM ENT: Ownership
BY RYAN KERRIGAN
Managing Director,
Kerrigan Advisors
Buy/Sell Trends
Expected in 2019
Buy/sell activity
remained very robust in
2018 - the fifth consecutive
year of over 200 transactions. Underlying today's
robust buy/sell market is the
growing U.S. economy.
GDP increased 4.5% in the
third quarter and wages rose
at 2.9%, the highest level
since 2009. With the
18
JANUARY 2019
unemployment rate at 3.7%
(the lowest level since
1969), consumer confidence
hit an 18-year high in
October. The strength of the
U.S. economy is sustaining
auto retail's high sales levels
and today's active buy/sell
market.
With this strong backdrop,
below are the key trends my
D I G I TA L D E A L E R . C O M
firm sees shaping the 2019
buy/sell market.
Generational transfers
increase the number of sellers coming to market
A growing pool of
financial investors support
consolidation and innovation
To achieve pricing
goals, sellers increasingly
accept structured transac-
tions
GENERATIONAL
TRANSFERS INCREASE
THE NUMBER OF
SELLERS COMING TO
MARKET
The auto retail industry is
primarily a family business.
For decades, dealers have
passed their businesses
onto the next generation
with great success. This
transition from generation
to generation defied the
family business odds. Only
30% of family businesses
are expected to transition to
the second generation. By
contrast, Kerrigan Advisors
estimates the majority of
today's dealers are second
generation or greater. Auto
retail's succession record is
a statistical aberration.
The challenge today
comes as a growing number
of third and fourth generation dealers are aging
into the succession plan.
Kerrigan Advisors believe
most dealers are currently in
the process of transitioning
a portion of management
and ownership from one
generation to the next, with
a significant number in the
third and fourth generations.
These generations have
a much lower likelihood of
successfully taking over the
family business. Only 12%
of family businesses transition to the third generation
and only 3% to the fourth.
(See Chart 1)
As an increasing percentage of the dealer body fits
this generational make-up, it
is not surprising to see more
sellers coming to market.
As the number of dealers
continues to decline and the
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Digital Dealer - January 2019
Table of Contents for the Digital Edition of Digital Dealer - January 2019
Digital Dealer - December 2018
Contents
Message from the Show Director
6 Facing Sales Slump, Automotive Brands Can Win by Adding Real-World Value in the Digital Shopping Journey BY Brian Solis
7 Reasons for a 2019 Social Media Policy Review
'OVER-THE-TOP' Advertising! BY Jim Boldebook Dealer Ops
Buy/Sell Trends Expected in 2019
The Two Non-Negotiable Pillars of Accountability
7 Questions to Ask When Hiring a Customer Service Trainer
How to Add $1.0MM to Your Bottom Line Profits
The Art and Science of Parts Inventory Reconciliation
Trade, Tariffs, and Labor
Building Your Business by Building Your People!
Great Service Managers Follow a 4C Approach
Collision Shop Liability Is a Serious Issue for All – Read This!
Does Your Store Exemplify Consistency & Excellence or Complacency & Mediocrity?
Increasing Service Business Through Convenience – A Tactical Approach
5 Questions That Are Missing from Your F&I Customer Interviews
How to Drive Sales with Predictive Analytics BY JOHANNES GNAUCK
Digital Dealer - January 2019 - CT1
Digital Dealer - January 2019 - CT2
Digital Dealer - January 2019 - Digital Dealer - December 2018
Digital Dealer - January 2019 - Cover2
Digital Dealer - January 2019 - 1
Digital Dealer - January 2019 - Contents
Digital Dealer - January 2019 - 3
Digital Dealer - January 2019 - Message from the Show Director
Digital Dealer - January 2019 - 5
Digital Dealer - January 2019 - 6 Facing Sales Slump, Automotive Brands Can Win by Adding Real-World Value in the Digital Shopping Journey BY Brian Solis
Digital Dealer - January 2019 - 7
Digital Dealer - January 2019 - 7 Reasons for a 2019 Social Media Policy Review
Digital Dealer - January 2019 - 9
Digital Dealer - January 2019 - 'OVER-THE-TOP' Advertising! BY Jim Boldebook Dealer Ops
Digital Dealer - January 2019 - 11
Digital Dealer - January 2019 - 12
Digital Dealer - January 2019 - 13
Digital Dealer - January 2019 - 14
Digital Dealer - January 2019 - 15
Digital Dealer - January 2019 - 16
Digital Dealer - January 2019 - 17
Digital Dealer - January 2019 - Buy/Sell Trends Expected in 2019
Digital Dealer - January 2019 - 19
Digital Dealer - January 2019 - 20
Digital Dealer - January 2019 - 21
Digital Dealer - January 2019 - The Two Non-Negotiable Pillars of Accountability
Digital Dealer - January 2019 - 23
Digital Dealer - January 2019 - 7 Questions to Ask When Hiring a Customer Service Trainer
Digital Dealer - January 2019 - 25
Digital Dealer - January 2019 - How to Add $1.0MM to Your Bottom Line Profits
Digital Dealer - January 2019 - 27
Digital Dealer - January 2019 - The Art and Science of Parts Inventory Reconciliation
Digital Dealer - January 2019 - 29
Digital Dealer - January 2019 - Trade, Tariffs, and Labor
Digital Dealer - January 2019 - 31
Digital Dealer - January 2019 - Building Your Business by Building Your People!
Digital Dealer - January 2019 - 33
Digital Dealer - January 2019 - Great Service Managers Follow a 4C Approach
Digital Dealer - January 2019 - 35
Digital Dealer - January 2019 - Collision Shop Liability Is a Serious Issue for All – Read This!
Digital Dealer - January 2019 - 37
Digital Dealer - January 2019 - 38
Digital Dealer - January 2019 - Does Your Store Exemplify Consistency & Excellence or Complacency & Mediocrity?
Digital Dealer - January 2019 - 40
Digital Dealer - January 2019 - 41
Digital Dealer - January 2019 - Increasing Service Business Through Convenience – A Tactical Approach
Digital Dealer - January 2019 - 43
Digital Dealer - January 2019 - 5 Questions That Are Missing from Your F&I Customer Interviews
Digital Dealer - January 2019 - 45
Digital Dealer - January 2019 - How to Drive Sales with Predictive Analytics BY JOHANNES GNAUCK
Digital Dealer - January 2019 - 47
Digital Dealer - January 2019 - 48
Digital Dealer - January 2019 - Cover3
Digital Dealer - January 2019 - Cover4
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