CBT News: Dealership valuations, buyer demand shapes 2027 outlook

Dealership valuations remain strong, and buyers continue to pursue acquisitions heading into 2027.

On CBT News’ Inside M&A, Dave Cantin, Founder, CEO and Chairman of Dave Cantin Group, joined Jim Fitzpatrick to discuss buyer demand, seller preparation, and what he expects in the year ahead.

Buyers are pursuing targeted growth

“Even with interest rates where they are today, we are still seeing a robust 2026,” Cantin said. “Quarter after quarter, it’s not slowing down.”

Dealers who spent years building capital are ready to buy. Many are targeting specific markets and OEM partners, seeking clusters of stores that fit their existing operations and growth plans.

Sellers face different questions. Some have no next generation ready to take over or employees who can afford to buy the business. With valuations at what Cantin described as all-time highs, owners considering an exit are reviewing their options.

Preparation comes before a sale

Deciding to sell is only the first step.

“We jump to set them up for success. We don’t jump to bring them to market,” Cantin said.

DCG reviews dealership performance, prepares owners and their teams for the transition, and brings in advisors to address tax preparation, estate planning, and asset management. That work takes time and should begin before a dealership goes to market.

Cantin also cautioned against assuming a sale to a neighboring dealer will produce the best outcome. Owners may leave money on the table or encounter unexpected transition problems. Experienced advisors help evaluate the business and guide appraisals, environmental reviews, and due diligence.

Every store should earn its place in the portfolio

Buyers increasingly want multiple dealerships within a market, where nearby stores can share resources and support operations.

Owners are also looking more closely at the stores they already have. A weak-performing dealership can consume attention that would be better spent elsewhere. Selling it can free up capital and time for stronger businesses.

Brand outlooks vary

Cantin said Nissan can work well for hands-on operators. He sees comeback potential for Audi if its products improve, while Volkswagen faces dealer frustration over the manufacturer relationship.

Porsche remains a blue-chip asset in his view, with a limited dealership network and strong buyer interest. He also expressed confidence in Mercedes-Benz and praised Adam Chamberlain’s leadership.

Momentum heading into 2027

Cantin said DCG had seen no election-related hesitation from buyers or sellers. Advisory calls and growth discussions remained steady, giving him confidence that 2026’s momentum would continue into 2027.

His advice to owners: Begin planning before a deal is on the table. DCG’s work with dealers often starts well ahead of an acquisition or sale, giving them time to address succession and prepare for their next move.