Haig Partners is proud to share that Alan Haig, our president, was recently featured in Auto Remarketing, offering his expert insights on the dynamic state of the dealership buy-sell market. Reflecting on a brisk 2024 and forecasting an evolving landscape for 2025, Alan outlined key factors shaping the automotive M&A space.
A Brisk 2024 Sets the Stage for 2025
In 2024, dealership mergers and acquisitions reached record highs, driven by strong buyer demand and historically high dealership profits. Alan highlighted landmark transactions, including Haig Partners advising on the record-breaking sale of South Motors/Vista Motors to Morgan Automotive Group out of South Florida. Additionally, the sale of Ussury Motors Mercedes-Benz in Coral Gables, Florida, demonstrates the scale of activity.
However, Alan noted that by late 2024, sky-high prices began concentrating on top-performing franchises, such as Toyota, Lexus, Honda, and Mazda. Meanwhile, less stellar franchises faced moderated valuations, signaling a shift in buyer preferences.
What’s Ahead for 2025?
Alan anticipates the 2025 market will remain active but take on a different character. Key trends include:
- Selective Buyers: With dealership profitability waning—down 30% in 2024—buyers will focus more on strong brands and favorable geographies.
- Private Buyers Leading the Way: Smaller, privately owned dealership groups, often backed by private equity or family offices, are expected to dominate the market. These buyers are increasingly adept at meeting manufacturers' expectations.
- Shifts in EV Policy: Alan is optimistic about potential changes in EV policies, suggesting support for hybrids and plug-in hybrids could reduce dealer concerns and enhance buy-sell activity.
A Balanced Market for Sellers
While it remains a seller’s market, Alan advises dealership owners to be realistic about valuations. The record-setting transactions of 2024 may not extend to all brands in 2025, as buyers grow more discerning.
At Haig Partners, we remain committed to helping our clients navigate these evolving trends with unparalleled expertise. The dealership buy-sell market continues to provide exceptional opportunities for growth and transformation, and we are honored to play a trusted advisory role in this journey.
For more insights or to discuss your dealership’s future, contact Haig Partners today. Together, we’ll drive your success forward.
