This week’s issue is all about arriving at a dealership’s value. First, Don Ray, who has graced our pages many times, looks at the concept of the Multiple. Multiples, or Blue Sky Multiples as they are sometimes called, are arrived at using estimates.
Some outfits publish reports listing multiples for various franchises. Ray takes that practice apart by detailing all the different elements that should be considered to correctly estimate a multiple. It’s exhausting and wonky, but makes Ray’s point fabulously. After reading his column you many think twice before believing the published reports.
We also re-visit a column by Stephen Bethel of Frazier Capital Valuation on seller characteristics. Correctly identifying the type of seller you are dealing with can help you develop the best negotiating tactic to arrive at the acceptable value for both sides.
We also have that most popular of sections, Transaction News.
Enjoy!
Alysha Webb, Editor and Publisher