Brian Brown, COO
Time to buy or sell?
Brian Brown, COO
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Trade and a shift in the market has bred uncertainty in the automotive industry, and many dealers are now considering whether it’s time to sell or expand their business. It’s a question that the Dave Cantin Group sought to tackle at this year’s NADA event.
“We’ve talked to a significant number of dealers that are thinking about their plans for the future, wondering what their succession plan is and potentially selling their dealership,” said Brian Brown, CEO, Dave Cantin Group. “The average age of a dealer owner in Canada and the U.S. right now is about 65-70. It’s an aging dealer body, and this (the situation) comes at a time when there’s a lot of uncertainty in the market against the big groups, who are consolidating in volumes.”
The Dave Cantin Group specializes in working with buyers and sellers on the entire application process. Brown has been speaking with different dealer operators and groups at the show — many of which are looking to expand. He said there has been a lot of activity in the last few years in terms of mergers and acquisitions, and 2019 looks to be even stronger.
Dealers appear eager to put their succession plan in action, cash out, retire and spend time with their families while they’re in good health. “It’s an aging dealer body, and obviously there’s been more (younger) buyers that have come onto the scene and large privates that are buying lots and lots of stores.”
Vehicle sales are expected to decrease slightly this year, interest rates are going up, and the cost of capital (in terms of borrowing money) is higher — all of which has had an impact on dealerships. With all this in mind, some dealers may see these changes as a sign to make their exit from the industry.
Return to NADA Show 2019
