After selling his business almost a year ago, Chris Pfaff said there are “storm clouds ahead” economically, and recommends those in the automotive business considering retiring to sell now. Pfaff, who sold his Pfaff Automotive Group last August to American-based Lithia Motors, told Canadian auto dealer that the combination of rising interest rates, inflation, lack of inventory due to the chip shortage, and the industry shift toward electrification may be factors for dealers considering whether or not to sell their businesses.
“So, unless a dealer has a long-term perspective, now may be the right time to exit,” said Pfaff. Pfaff has remained as President and Chief Executive Officer since the sale to Lithia and said he is keeping busy evaluating potential buys. He said the experience of selling his company to Lithia has given him insight into the process of buying and selling dealerships.
“It’s been a great experience for me dealing with Lithia, so that makes it easy to talk about the process with someone else considering selling,” said Pfaff. “I truly believe we are a great buyer – and I know it from my personal experience.” Lithia has expanded its Canadian footprint since acquiring Pfaff’s stores acquiring Toronto-based Sisley Honda in May, and Pfaff indicated he has been keeping busy evaluating stores.
“We contact dealers we target that we know – or don’t know,” said Pfaff. “We also often have brokers approach with opportunities, and sometimes banking contacts, manufacturers and accounting firms are the ones that make the introductions.”
He said Lithia is interested in opportunities across Canada, in particular, domestic, main-line Japanese and Korean brands. “However, Pfaff is also known for luxury, so that’s still something we continue to be interested in,” said Pfaff.
He said he quickly detached himself emotionally from what he was doing before. “In my life, I’ve always adapted surprisingly well to any new situations and found this to be the case again,” he said. “I live in the day ahead with the task at hand.”
