Blue-sky multiples for Jaguar, Land Rover and Ford soar in H2 2013

Article by Christian A., on April 25, 2014

Blue-sky store values for Jaguar, Land Rover and Ford brands surged in the in the second half of 2013 from first-half figures for their dealerships, according to the Blue Sky Report for year-end 2013 as published by dealership buy/sell advisory firm Haig Partners. Blue sky is the intangible value of a dealership expressed as a multiple of adjusted pretax income.

Multiple for Jaguar Land Rover rose from 4.0 to 5.0 in the first half of 2013 to 4.5 to 5.5 in the second half, boosted by surging Land Rover sales and profits as well as new products. Ford’s multiple rose from 3.5 to 4.5 in the first half of 2013 to 4.0 to 5.0 in the second half of the year.

Ford gained the most market share among local brands in 2013 and was the most desirable brand, as measured by blue sky. Blue-sky multiples for BMW, Mini, Hyundai, VW and Mazda brands dipped. Haig Partners pegs the average industry multiple in 2013 at 4.3.

Alan Haig, president of Haig Partners, remarked that overall, multiples may stable throughout 2014, with the average multiple playing at around 4.5. He expects the figure not to surge a lot, and even said the number many drop sharply when people get concerned about the next recession.

“But that’s still probably years away,” Haig said. In evaluating blue-sky values, Haig’s report tracks Jaguar and Land Rover, and BMW and Mini, as if they were a single entity.

According to the report, luxury brands topped the ranking multiples with Mercedes-Benz, BMW/Mini, Lexus, Audi and Porsche getting the highest range of multiples. Mercedes-Benz’s multiples were 5.5 to 7.5, while the others have multiples reaching 7.0.

The company said BMW’s multiples dropped as it is limited by its disclosure of facility renovation requirements that exceeds $8 million per store on average. [source: automotive news - sub. required]

Topics: jaguar, land rover, ford

If you liked the article, share on:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries