In the last couple of blogs, we covered the essential steps involved in selling your business and how to prepare for the sale. From assessing the value of your business to understanding the sale...
Valuing your business accurately is crucial whether you’re planning to sell, attract investors, or simply want to understand its true worth. One of the most effective ways to do this is by using...
Timing is crucial when preparing your business for sale. Ideally, you should start preparing your business for sale at least two to three years in advance to optimize its appeal to buyers. However, be...
Investing in businesses vs investing in real estate is often a decision that investors must weigh in. Of course, each investment has its distinct advantages and disadvantages. While investments in...
Fees and Costs for Selling Your Business Selling a business involves more than just finding a buyer. As a business seller, you’ll encounter a variety of costs at the closing table that can...
Elevating Your Business Sale Preparation with Accel Business Advisors in 2024 If you ever think about selling the business you have built and run for so many years, it is important you have a clear...
Selling a business is a big decision and a complex process. While the specifics can vary based on the business and the broker involved, I want to share a general overview of what the process typically...
Many business owners envision selling their companies within the next five years, but the reality is that many won’t achieve this goal. In fact, many will be ill-prepared to start the sale process...
10 Questions to Ask Every Acquisition Target 70% to 90% of all acquisitions fail to achieve the results acquirers want. Why? Most often, failure is directly tied to the integration plan and...
Auto and Motorcycle Dealership M&A Trends and Insights
The auto and motorcycle dealership industry—especially independent and multi-location operations—is seeing steady M&A activity as consolidation and succession planning become increasingly important. With strong buyer interest, especially in markets with limited new vehicle inventory and growing used vehicle demand, now may be the right time to explore a sale. Accel Business Advisors helps dealership owners navigate this high-stakes process for optimal results.
Why Business Owners Are Selling
Dealership owners often consider selling when approaching retirement, facing OEM compliance challenges, or seeking to capitalize on favorable market multiples. Buyers are actively seeking established operations with strong local reputations, diversified revenue streams (sales, service, parts), and scalable processes. Our team works with owners to structure deals that maximize value and legacy.
Valuation Benchmarks
SDE Multiples: 2.5x–4.0x for single-location dealerships
EBITDA Multiples: 5x–7x for multi-location, brand-diverse, or higher-margin operations
- 🔑 Key Valuation Drivers
- • Strong mix of new, used, service, and F&I income
- • High customer satisfaction and referral rates
- • OEM relationships and compliance history
- • Experienced management and sales team in place
- • Clean, well-maintained facilities and inventory systems
- • Robust DMS or CRM systems supporting operations
- ❌ Common Valuation Detractors
- • High dependency on a single brand or OEM
- • Limited after-sale service or weak F&I performance
- • Compliance issues or OEM audit risks
- • Poor documentation or outdated tech systems
- • Low online reputation or poor customer retention
- 💸 Typical Deal Structures
- • Seller’s note: Seller-financed portion, repaid with interest.
- • Earnout: Performance-based post-sale compensation.
- • Equity rollover: Seller retains partial ownership in the combined entity.
- • SBA loans/bank financing: Common tools for deal funding.
- 🧑💼 Who’s Buying Dealerships?
- • Dealer groups looking to expand geographically or add new brands
- • Private equity-backed roll-ups focused on retail auto/moto
- • Individual buyers with dealership or sales management backgrounds
Contact Us for Free Consultation
In the last couple of blogs, we covered the essential steps involved in selling your business and how to prepare for the sale. From assessing the value of your business to understanding the sale...
Valuing your business accurately is crucial whether you’re planning to sell, attract investors, or simply want to understand its true worth. One of the most effective ways to do this is by using...
Timing is crucial when preparing your business for sale. Ideally, you should start preparing your business for sale at least two to three years in advance to optimize its appeal to buyers. However, be...
Investing in businesses vs investing in real estate is often a decision that investors must weigh in. Of course, each investment has its distinct advantages and disadvantages. While investments in...
Fees and Costs for Selling Your Business Selling a business involves more than just finding a buyer. As a business seller, you’ll encounter a variety of costs at the closing table that can...
Elevating Your Business Sale Preparation with Accel Business Advisors in 2024 If you ever think about selling the business you have built and run for so many years, it is important you have a clear...
Selling a business is a big decision and a complex process. While the specifics can vary based on the business and the broker involved, I want to share a general overview of what the process typically...
Many business owners envision selling their companies within the next five years, but the reality is that many won’t achieve this goal. In fact, many will be ill-prepared to start the sale process...
10 Questions to Ask Every Acquisition Target 70% to 90% of all acquisitions fail to achieve the results acquirers want. Why? Most often, failure is directly tied to the integration plan and...
