The automotive M&A market is reporting impressive activity, will this fast pace continue? – George Karolis, The Presidio Group

The second quarter of the year just kicked off and reports have shown there are no signs of sales slowing down in the retail automotive industry. This is driving more dealers to sell their stores and more buyers to enter the market. On today’s show, we’re pleased to welcome George Karolis, President of The Presidio Group, to discuss the latest trends in automotive acquisitions. 

Karolis kicks off the interview by talking about the fast-paced market of automotive M&As. Despite the pandemic during 2020, the automotive buy/sell market was extremely active. While many long-time dealers saw the challenges of the pandemic as an opportunity to exit the market, many new investors saw record profits from retailers as a chance to enter the automotive space. Karolis says that nothing lasts forever, leading many dealers to sell their stores while valuations are high.

While consolidation continues to play a major factor in automotive acquisitions, Karolis believes there is still space for small dealers in the market. Dealers are expected to do well for the foreseeable future. However, many challenges might be on the horizon regarding the arrival of electric vehicles and autonomous technologies.

Karolis says the current market is certainly favorable towards sellers. According to Karolis, The Presidio Group has buyers calling every day looking for purchase opportunities in retail automotive. The group has already closed two deals in the first quarter of 2021 and expects to close many more deals by the end of the year.

Karolis concludes by discussing how electric vehicles are impacting automotive acquisitions. Many dealers are nervous about the challenges that EVs will impact business, leading some owners to sell their business. On the other hand, many buyers are interested in taking the EV revolution head-on. Buyers see potential in the market and believe car shoppers will be all-in on new technologies.

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