The auto dealership transaction market set a new record last year, according to Kerrigan Advisors’ 2023 Blue Sky Report.

The buy-sell adviser said nearly 400 transactions took place over the year, up 6% year-over-year and surpassing the old peak in 2021.

The deals included the sale of Jim Koons Automotive Cos. to Asbury Automotive Group, which Kerrigan brokered and that it says is the third biggest transaction in auto retail history.

It said 680 franchises changed hands last year, up more than 5% year-over-year.

Kerrigan said many dealers want to scale for future security and that of those surveyed last year, almost half indicated they planned to pick up at least one store, though just 6% planned to sell.

Though blue-sky values were off their 2022 peak, they remained elevated, reported Kerrigan, which estimates they fell on average 8% year-over-year, well under an estimated 26% drop in industry earnings.

“This is because blue sky is driven by buyers’ expected future earnings, not past performance,” it said in its report.

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