Haig Partners has released its Q2 2021 Haig Report. “It’s an odd time when an empty lot means an overstuffed wallet. Consumers have cash to spend but automakers are not able to produce enough units to meet demand due to a lack of microchips. Dealers are enjoying these unprecedented conditions of high margins and low expenses which are leading to record high profits and record high dealership values,” commented Alan Haig, President of Haig Partners.  “Buy-Sell activity is surging as buyers are eager to acquire more stores. Prior to the Pandemic we were tracking 75-90 dealerships sold per quarter and in Q2 2021 alone we saw 120 dealerships change hands. And since the lack of inventory is projected to last through the end of the year and beyond, we are expecting to see elevated profits and blue sky values for some time,” he continued.

Learn more about and hear key trends from the Q2 2021 Haig Report by joining a live discussion being hosted Friday, August 27th at 1:00pm EDT. Register Here

Some of the key findings from the Q2 2021 Haig Report include:

• Blue sky values rose an estimated 52% from 2019 and 26% from the end of 2020 and are now at record-high levels
• The average privately-owned dealership generated an estimated $3.1M in adjusted pre-tax profit over the past twelve months, 2.2x the level of profits in 2019, the last year before the Pandemic
• An estimated 422 dealerships sold in the twelve-month period ended 6/30/2021, 41% more than in 2019, the last year before the Pandemic
• Public equity valuations are 109% higher than they were before the Pandemic
• Public company spending on US auto acquisitions in the first half of 2021 was almost $2.0B, 756% more than they spent in the same period in 2020
• Unprecedented conditions continue in auto retail fueled by inventory shortages and strong economic recovery

Download the full press release for the Q2 2021 Haig Report here.