The Income Statement: What Savvy Operators Focus On
Dave Cantin Group and CliftonLarsonAllen’s analysis of thousands of dealership financials demonstrates how proper addbacks and financial reporting directly impact your M&A readiness by enhancing access to capital, strengthening OEM relationships, and maximizing valuations.
Improper financial reporting can cost dealers millions in lost valuation during a transaction. Our comprehensive analysis of dealership financials across North America reveals a stark truth: the difference between average operators and savvy ones often comes down to how they manage their income statement.
The income statement is one of, if not the, most critical financial reports for dealership operators. It provides a clear snapshot of revenue, gross profit, expenses, and ultimately net profit. A savvy operator understands that revenue is just the starting point and that long-term success is driven by strong and consistent profitability.
This article covers what is commonly found in a dealership’s income statement, best practices for managing it, and the key areas it impacts.
Dave Cantin Group contributors Brian Traugott, Daniel Pilger, and Luke Murphy, along with CliftonLarsonAllen contributors Patrick Fuist and Mark Jostes.
About Dave Cantin Group: The Dave Cantin Group (DCG) is North America’s leading retail automotive M&A advisory company, advising on approximately 40 transactions annually. With our proprietary Jump IQ software providing visibility to all 18,000+ US dealerships, we offer unmatched market intelligence and advisory services for acquisitions, divestitures, and strategic planning.
About CliftonLarsonAllen: CLA is one of the largest professional services firms in the country, offering industry-focused audit, tax, consulting, and wealth advisory services. With deep automotive expertise and nearly 9,000 professionals across 130+ locations, CLA helps dealerships optimize their financial performance and strategic positioning.