Luxury dealership demand continues to outpace supply, driving competition among buyers across the country. On the latest episode of Inside M&A, Dave Cantin, Founder and CEO of Dave Cantin Group (DCG), explains why dealer groups are willing to expand far beyond their traditional markets to acquire premium franchises and what the trend means for valuations, succession planning and dealership owners considering a sale.
As dealer groups look beyond traditional luxury markets, Cantin notes that DCG’s clients are ready to buy anywhere in the country to land the right luxury platform. It’s a strategy backed by history, with dealers routinely entering new geographic regions just to acquire a sought-after luxury franchise.
According to Cantin, the appeal comes down to portfolio value, in which the halo effect is strong enough that buyers will accept less desirable assets just to get access to the luxury stores attached to them. He said DCG regularly sees deals where an acquisition includes three luxury rooftops and four or five non-luxury stores, and buyers pursue the whole package specifically to secure the luxury franchises.
"When you have luxury in your portfolio, it enhances the value of your entire automotive portfolio."
Transaction activity remains robust
Cantin highlights that several brands are fueling today’s luxury M&A momentum. For instance, Porsche’s liquidity has more than tripled compared with pre-2021 levels, easily offsetting the brand’s heavy facility requirements. Additionally, deal volume across the luxury tier reflects that strength:
- Mercedes-Benz & Audi: 8 transactions each in H1 2026 (Mercedes has already topped its entire previous decade of deal volume)
- Porsche: 7 transactions
- Lexus: 6 transactions
- BMW & Land Rover: 5 transactions each
Moreover, Cantin points to Ferrari as another strong example of this shift, noting nine dealership transactions closed over the past 36 months, which represent roughly 20% of the brand’s North American network. He also notes that German luxury brands are leading the pace, since halfway through 2026, Mercedes-Benz and Audi have already matched or surpassed their entire 2025 transaction totals.
Succession planning
To illustrate the patience required for major M&A transactions, Cantin points to DCG’s advisory role in the $500 million sale of Midwestern Auto Group. Transitioning a dealership network built over decades isn’t an overnight task; in MAG’s case, the process took nearly two years from initial planning to final close.
According to Cantin, DCG breaks the process into three phases.
- The first is due diligence, where a team of seven to 15 people evaluates the acquisition’s current performance and its potential for future growth.
- The second phase focuses on identifying the right buyer pool, one that aligns financially, culturally and with manufacturer expectations. Cantin said that step matters as much to the OEMs as it does to the seller, since manufacturers want to see a buyer who will carry a legacy dealership forward the right way.
- The third phase covers negotiations through closing, including the letter of intent, asset purchase agreements and real estate agreements, along with manufacturer approvals.
During the Midwestern Auto Group transition, attorney Stephen Dietrich advised seller Mark Brentlinger, with the Jeff Wyler Automotive Family acting as the buyer. Cantin praised both parties for staying well-aligned throughout this intricate, multi-year deal.
What today’s market means for dealers
Despite broader economic uncertainty, Cantin said dealership profitability and buyer demand remain strong, particularly among luxury franchises. He said elevated transaction volume is typically a signal that sellers are getting the numbers they want and buyers have the financial capacity to close. For dealers considering a sale, Cantin’s advice is to treat succession planning as a multiyear process rather than an overnight decision, and to recognize that luxury franchises remain among the most valuable long-term assets a dealer group can hold.
