Illinois auto dealerships are among the most complex small-business transactions, involving franchise rights (for franchised dealers), real estate, new and used vehicle inventory, parts inventory, finance and insurance income, and service department revenue. Blue sky (franchise goodwill) values alone can range from $500,000 to $10M+ depending on brand, market, and profitability.
Franchised vs. Independent Dealers
Franchised dealerships (GM, Ford, Toyota, Honda, etc.) are sold as going concerns with the OEM's approval of the incoming dealer. Blue sky values are benchmarked against industry data by brand and market. Independent used car dealers are valued more like traditional businesses — SDE multiples of 1.5x–3x are common.
Real Estate vs. Operations
Most auto dealership transactions separate the real estate from the operating business. The real estate (facility, lot, service building) is often owned by the dealer or a related entity and leased back under a long-term arrangement. Understanding the fair market lease rate and real estate appraised value is as important as understanding the operating business value.
OEM franchise agreements must be reviewed for right of first refusal provisions, facility upgrade requirements, and dealer succession approval processes. These manufacturer processes add 60–120 days to typical sale timelines.