Farid Ahmad, founder and CEO of DSMA, a leading provider of dealership mergers and acquisitions services, joins us at this year’s 2025 NADA Show in Orleans. Ahmad discussed the company’s remarkable 2024 performance, completing 130 transactions, and explained his insights on the ongoing momentum in the M&A market. He highlights key industry challenges, including the impact of dealer demographics, evolving OEM strategies, and global market opportunities.
Key Takeaways
- Ahmad illuminates the strong automotive M&A market activity driven by the aging dealer demographic and industry uncertainty. Dealers have faced difficult decisions about succession planning or exiting the market, and conversations about transitioning ownership have increased amid economic and regulatory changes.
- The evolving landscape of OEM strategies and electrification is influencing dealer sentiment. Ahmad noted that mergers, such as the Honda-Nissan-Mitsubishi alliance, create opportunities for innovation but also introduce uncertainty. Brands like Stellantis face challenges due to a lack of clear direction, causing some dealers to consider exiting their franchises.
- Ahmad emphasized global opportunities for dealership growth, particularly in Europe and the UK, where economic conditions create attractive valuations for acquisitions. However, he noted that international expansion requires strong local partnerships and tailored strategies to navigate the differences in dealership operations and financing challenges abroad.
Catch all of CBT News’ coverage of the 2025 NADA Show here.
