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Business valuation - auto dealerships

Auto dealers are the largest retail sector in the U.S collectively pull in $400 billion in revenue

From Forbes: How to value an auto dealership

The global recession and credit crunch have been devastating for the U.S. auto industry. Just a few years ago, automakers moved 14 million to 15 million vehicles a year; now that number is an anemic 9.5 million, roughly the same as in the early 1980s. Result: major job losses in Detroit, government invention and a massive rationalizing of the supply chain.

Auto dealers collectively pull in $400 billion in revenue - making autos still the largest retail sector in the U.S - but that pile is getting smaller. According to IBIS World, the number of auto dealerships is expected to contract by 19%, to 17,582, this year vs. 2008.

Read the full article here.


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