Warren Buffett To Buy Automobile Dealerships

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Oct 032014
 

Warren Buffett’s Berkshire Hathaway has agreed to acquire America’s fifth-largest auto retailer, privately held Van Tuyl Group, with revenues of $9 billion.  Berkshire plans to launch a consolidation of this highly fragmented business.

I am quoted in a Wall Street Journal article on this topic:

“This deal appears to be a modest-size purchase. David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business, said a comparison of Van Tuyl’s revenue to publicly traded peers suggests the price tag may have been about $3 billion.”

The entire article is available at:

http://online.wsj.com/articles/berkshire-to-buy-car-dealership-group-1412253366?mod=Business_newsreel_1

 

I am also quoted in a Wall Street Journal blog:

“It’s unclear what Van Tuyl’s profitability or free cash flow are, and a company’s price tag is usually based on a multiple of one of those. But David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business, said a comparison of Van Tuyl’s revenue to publicly traded peers suggests the price tag for the deal may have been about $3 billion.”

The entire blog is available at:

http://blogs.wsj.com/moneybeat/2014/10/02/buffetts-biggest-deals-and-how-van-tuyl-stacks-up/?KEYWORDS=david+kass

 

On Marketplace (American Public Radio) I am quoted as follows:

“It is also exciting for the auto industry that Buffett is getting involved with. “I think it is a positive signal to investors and consumers, for that matter, that this is a very healthy, growing industry,” says David Kass, who teaches finance at the University of Maryland and closely tracks Berkshire Hathaway.”

This interview is available at:

http://www.marketplace.org/topics/business/case-buying-car-dealerships

 Posted by at 6:55 am