The automotive retail industry is deeply fragmented. Unlike many industries, car sales has resisted consolidation over the years, with most car dealerships today operating basically as privately owned small businesses.
Today there are 16,802 franchised dealers in the US. AutoNation is the largest publicly held auto group with 360 locations. Because of the industry fragmentation and opportunity to consolidate, publicly-held auto groups, privately-held auto groups, Private Equity firms, and family offices all are very active in the Buy/Sell market.
With consolidation often comes economies of scale for dealership buyers. However, it may also come with increased risk, especially as the industry becomes more challenged by online competitors and shrinking margins. If you or your organization is planning to purchase a dealership, you need substantial industry expertise on your team to succeed and grow.
Dealerships are experiencing record breaking car sales in the last 5 years. Valuations for dealerships are extremely high, meaning that buyers need incredibly tight and optimized operations to see an effective return on investment.
Proven Management Consulting for Car Dealership Owners and Buyers
Max Zanan is a proven industry leader with decades of experience in automotive retail and hundreds of clients in all states of ownership and management. If you’re planning to acquire a dealership and you are not personally an experienced auto retail manager: you need help! Today’s industry is competitive, low margin, and expensive. Max Zanan will help you plan and execute a modern dealership strategy including:
• How to hire, train and retain a strong and motivated team
• How to improve profit through your F&I and service departments
• Avoiding huge fines and penalties through effective compliance procedures
• The importance of digital tools and strategies for dealership success
• Improving customer loyalty, lifetime value, and profit per sale