Publics' Purchases in 2022 Take a Tumble
Business attorney Stephen Dietrich spoke with Automotive News about the decrease in acquisitions by the six publicly traded auto retailers in 2022. Compared to 2021, when each of the retailers acquired a dealership, last year was much quieter, with 19 acquisition transactions involving 39 dealerships. Mr. Dietrich commented that falling market valuations could be a reason for the drop in activity.
"It doesn't surprise me that the public groups were a little quieter, just given the way their stock is valued," he explained. "Their investment of money may have been more valuable in buying back some of their stock than going and buying dealerships."
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