Haig Partners has released its 2024 fourth quarter report that concludes that demand for dealerships remains robust as private and public buyers continuing to pursue acquisitions across all major franchises.
In 2024, Haig advised on 22 transactions involving 58 dealerships nationwide, including the highest prices ever paid for BMW, Honda and Kia dealerships. While uncertainty—including tariffs and fluctuating consumer confidence—has affected some markets, the report summarizes that dealership values remain elevated since profits remain high and buyer demand remains strong, particularly for top-performing franchises.
Alan Haig, president of Haig Partners, commented that the Q4 2024 Report demonstrates dealership M&A remains remarkably strong despite evolving economic and political conditions.
“While profits have come off their record highs, they are still nearly double pre-pandemic levels, and buyers continue to aggressively pursue dealerships,” said Haig in a statement with the reports release. “We were pleased to help set record high values for several franchises in 2024, and the offers that our clients are accepting so far this year prove that sellers can still command attractive valuations, especially those with top-tier franchises.”
2024 Overview
According to Haig, 510 rooftops traded hands in 2024, making it the fourth-busiest year in auto retail M&A history. The average publicly traded dealership had an estimated blue sky value of $20.9 million in 2024—a 14 percent decline from 2023, but still 122 percent higher than 2019. Pre-tax profits per dealership averaged $4.0 million in 2024, continuing to remain above pre-pandemic levels.
Private dealership groups accounted for 95 percent of dealerships acquired, while public groups sought opportunities outside U.S. auto retail. Toyota, Mazda, Chevrolet and Buick-GMC all saw increases in the blue sky multiples used by buyers when making offers thanks to strong performance in those franchises.
Segment Breakdown
For the luxury segment, BMW and its dealers expect additional growth in 2025 from ICE SUVs, as the days’ supply of electric and plugged-in hybrid vehicles has steadily risen across the channel. BMW’s technology-neutral “Power of Choice” strategy remains balanced and appeals to both dealers and consumers.
Toyota continues to be one of the most in-demand franchises. There are many buyers for these franchises, although some are concerned that Toyota stores have not normalized yet in terms of profits but will eventually. The other brand to get an increase in the mid-line import franchises was Mazda, as improved sales and profits per location and there is strong customer loyalty.
As for the domestic franchises, Chevrolet and Buick/GMC were fourth quarter winners. “Chevrolet’s current lineup is among the best in brand history, and its continued production of affordable vehicles is allowing the OEM to take market share ceded by competitors, like Ford, who have exited the segment,” the report stated.
The combined Buick/GMC sales increased 9.1 percent in 2024. The backdrop for dealers. according to Haig, is GMC is offering buyouts to dealers, and “we understand a few are still taking the deals, so throughput for the remaining locations should continue to improve.”
“These franchise-specific trends highlight where dealers are thriving and where challenges exist,” Haig noted. “For sellers, the market remains strong, with buyers continuing to bid aggressively on most franchises. Valuations are tough on brands like Nissan and CDJR today, but opportunistic buyers see challenged brands as an opportunity to “buy low.”
Market Consolidation Trend Continues
This is happening as consolidation is seen at every level of the industry.
“We continue to see strong activity from family-owned dealership groups, private equity-backed buyers and public retailers expanding their portfolios,” said Haig. “Dealership owners considering an exit have a window of opportunity to capture strong valuations before market conditions shift.”
Haig Partners anticipates another strong year for buy-sells in 2025, as dealership profitability remains well above historical norms and owners evaluate long-term exit strategies. Dealership consolidation will continue, with public groups returning to U.S. acquisitions and private dealers seizing opportunities in underserved or undervalued markets.
Dealership Prices Coming Down
“Many dealers who sat on the sidelines waiting for prices to come down are now seeing that opportunities exist,” added Haig. “We believe 2025 will be another busy year for buy-sells, with private and public buyers actively seeking acquisitions.”
In 2025, the auto retail industry remains strong for sellers, but market conditions can shift quickly. Haig sees it as the perfect time for dealership owners considering selling or divesting select stores to evaluate their options.
“The dealership buy-sell market remains highly active, and we continue to see strong offers for dealerships across the country,” said Haig. “While some owners have been waiting for the ‘perfect time’ to sell, history has shown that the best opportunities often come when buyers are motivated and values are still strong.”
