NEW YORK — December 16, 2025 — As U.S. auto dealership buy-sell activity nears a record-breaking year, Dave Cantin Group (DCG), a leading mergers and acquisitions advisory company to retail automotive groups and their owners, has released a new market intelligence report, “The Game-Changing Evolution of Dealership Valuation” highlighting how valuation methodology is shifting as sophisticated buyers prioritize future earnings, operational efficiency, and brand alignment over legacy approaches.
The report draws on insights from leading dealers, dealership group executives, and Dave Cantin Group’s analyst team to show why the traditional multiple-of-earnings model no longer accurately captures a dealership’s market value. Instead, DCG is using advanced pro forma modeling, benchmarking, and qualitative assessments to develop valuations for sell-side and buy-side clients.
“There’s been a real evolution in how valuations are done,” said veteran Toyota dealer Brian McCafferty, who was represented by DCG for the sale of his Subaru store in 2025. “Buyers now want to understand what a store could earn, not just what it has earned.”
According to the report, 2025 is on pace to be a record-setting year with more than 300 transactions representing over 500 dealerships and 700 individual franchises. DCG plays a central and strategic role in this activity, advising North America’s top dealership groups on approximately 40-plus deals annually.
Key findings from the report:
- Legacy valuation formulas are fading as buyers increasingly model future potential earnings, not just historical averages.
- The “sophistication gap” is widening, with larger, growth-oriented groups outpacing less prepared sellers.
- Dealerships are being evaluated holistically, including tech stack, local market data, service absorption, brand performance, and leadership succession plans.
- Clean financials, streamlined operations, and growth plans are critical to achieving maximum valuation in today’s competitive market.
“Whether our advisors are working exclusively with our sell-side or buy-side clients, the philosophy is the same,” DCG Partner and Chief of Staff Brian Traugott said. “The real driver
of value is the aggregation of all the factors that can help assess the business’s future potential to perform over time.”
Guidance for Dealers
The report also includes a practical checklist for dealership owners preparing to sell, highlighting six steps to increase value, from normalizing financials and documenting discretionary expenses to updating personnel plans and investing in clean back-office systems.
“Your dealership is more than a number on a spreadsheet,” said Steven Dougherty, Senior Director at Ken Garff Automotive Group. “It’s a bet on the future. And the best-prepared sellers win.”
Download the Report
The Game-Changing Evolution of Dealership Valuation is available now at: https://www.davecantingroup.com/the-game-changing-evolution-of-dealership-valuation/
About Dave Cantin Group
The Dave Cantin Group is a leading automotive M&A advisory company specializing in acquisitions, divestitures, intelligence and other advisory services. The company is the M&A services provider of choice for North America’s top automotive dealership groups, advising on approximately 40 transactions annually. DCG is differentiated by its advisory approach, long-term client relationships, and commitment to market intelligence tools that inform client strategy.
Through its M&A intelligence division, DCG produces automotive insights and delivers timely market intelligence, including the Market Outlook Report (MOR) and the Inside M&A studio show and podcast with CBT News. DCG’s proprietary AI-enabled platform Jump IQ anchors its advisory services to help retail automotive dealers make smarter data-driven M&A decisions.
The company’s nonprofit initiative, DCG Giving, funds child and adolescent cancer research and treatment across the United States and supports other charitable causes.
For more information, visit www.davecantingroup.com.
