As we enter 2024, it has crystalized that 2023 was in fact, a lot like 2022. It’s not an anomaly when buy-sell activity and dealership profitability rose to historic levels and stayed there.
Moving into the new year, the tide seems to be changing coming out of 2023 and into 2024. Manufacturer allocation is still impacting dealership sales, combined with negative economic headlines, more dealers are evaluating if it is finally time to retire or exit their businesses.
This article is the first of two intended to provide an update on the state of the buy-sell market as well as actionable steps to properly prepare the business for a sale to maximize its value and minimize the headache.
In 2023, our firm experienced a blistering volume of transactions, pacing well-over 80 dealership sales, across all our verticals, and far surpassing our competitors. This can be attributed in part to some of the same elements that created the buy-sell craze over the last two years.
[RELATED: Baltimore Potomac Truck Centers adds two locations]
The national dealership groups and the public companies are still on the hunt for quality acquisitions that fit their strategic growth plans, e.g., reputable businesses in a growing market, sufficient acreage to increase volume, well-maintained facilities, minimal capital expenditures required, tenured employees, and quality franchises. Despite developing trends in the commercial truck industry, quality dealerships like these remain in high demand and continue to command a premium value.
