One factor that could slow the pace of acquisitions is rising interest rates. Kenningham acknowledged that rate hikes have increased the cost of capital for making acquisitions.
“You have to be careful because your cost of money creates a different return model that you have to be cognizant of,” he said. “We are seeing the valuation soften a little bit as a result, and I think some of the sellers realize that.”
Kenningham told Automotive News after the forum that he envisions…
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