Alan Haig, President of Haig Partners, joined the Car Dealership Guy Podcast to discuss the forces shaping dealership M&A and the broader auto retail landscape heading into 2026. The conversation highlighted how buyer sentiment, brand strength, and future profitability expectations are increasingly influencing valuations.

A key theme was the importance of confidence in long-term earnings. As Alan noted, dealership “blue sky” is ultimately driven by how buyers view the future of a franchise, particularly amid rising uncertainty and evolving competitive dynamics.

Key takeaways:

• The market remains very strong
  Dealer profitability is still roughly 2x pre-COVID levels, supporting well-capitalized buyers and continued demand for high-quality franchises.
• Valuations are diverging
  “Blue chip” brands are achieving premium multiples, in some cases approaching 15x, while other franchises are seeing significant declines, with some transactions occurring at little to no blue sky.
• Concern Around Chinese OEM Entry Is Rising
  The potential entry of Chinese automakers into the U.S. market is increasingly influencing how buyers evaluate long-term profitability, particularly given what we’ve seen in other markets.
• Blue sky is being reassessed
  A dealership’s value is ultimately tied to expected future earnings. As uncertainty increases, buyers are becoming more disciplined in how they price risk.
• The buy-sell market remains active
  Transaction activity continues at a healthy pace, supported by strong balance sheets and long-term confidence in the franchise model.

To learn more about the current trends in auto retail, the value of your business or to have a confidential conversation, contact Alan Haig. Alan@HaigPartners.com | (954) 646-8921