Dealership sales could increase in next 3 years to meet publics' goals

The number of dealerships trading hands — which one buy-sell expert estimates declined by nearly a quarter after 2021's record year — could rise in the next three years to help three public auto retailers meet 2025 annual revenue targets, according to Alan Haig, president of Haig Partners.

Haig, who spoke Thursday at AutoTeam America's buy-sell summit, said Lithia Motors Inc., Sonic Automotive Inc. and Asbury Automotive Group Inc. would need to add a combined $48.7 billion in annual revenue through 2025 to meet respective plans.

"For the public companies to hit their goals and the private buyers to continue as they have done, we're gonna be seeing an estimated 662 rooftops traded per year for the next few years," said Haig, whose buy-sell firm is in Fort Lauderdale, Fla.

Haig estimates 533 dealerships were sold in 2022, including 34 by public auto retailers. He predicts Lithia, Sonic and Asbury could collectively buy 163 dealerships a year through 2025.

Lithia wants to grow to $50 billion in annual revenue, Asbury Automotive to $32 billion and Sonic to $25 billion in 2025.

Lithia CEO Bryan DeBoer, speaking at the same conference, said the auto retailer will need to acquire 100 to 150 more dealerships in the U.S., and possibly elsewhere, between now and the end of 2025 to help it reach its revenue goal.