The year is not even a month old, and already we are seeing increased acquisition activity in the US dealer market.
One has to ponder the reasons for this surge, and no doubt, intensifying competition is a major driver. In order to prosper, dealers need critical mass, access to multiple brands and diverse stock ranges, and broader geographic markets.
The barriers to entry for new players must be extremely steep in these tough times, so it makes sense to buy rather than start afresh.
On top of this, we see an ageing dealer base - much of it family-owned and often with limited succession options. So there are many dealers looking to monetise their reputations and reap the benefits of their decades of labour.