Many dealers rely heavily on Blue Sky multiples when valuing their stores, but that narrow approach can overlook key operational and financial factors. On this episode of Inside Automotive, Todd Berko, co-managing partner at Bel Air Partners, explains why dealers should use a broader set of valuation methods—including ROIs, EBITDA multiples, and future growth assessments—to understand their true market value. He discusses how working capital needs, capital improvements, and asset turnover all influence what buyers are willing to pay, especially private equity firms that prioritize EBITDA performance.Discussion highlights include:Why Blue Sky alone can misrepresent a dealership’s real valueHow ROIs, EBITDA multiples, and growth predictability strengthen valuation accuracyMarket trends keeping buy-sell activity healthy, including personal and family driversWays dealers can increase value through documentation, add-backs, and operational improvementsWhy some franchises facing challenges still offer strategic opportunities for new entrantsInside Automotive with Jim Fitzpatrick is powered by CBT News, your go-to source for the latest news, trends, and insights in retail automotive. Subscribe for more interviews with top industry leaders, dealership innovators, and experts shaping the future of automotive. For more content, visit CBTNews.com and follow us on your favorite podcast platform.

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