What’s happening behind the scenes in the Honda and Acura dealer market? On today’s Inside M&A, Dave Cantin, Founder, CEO, and Chairman, and Ray Mikiciuk, Managing Director of the Dave Cantin Group, join us to discuss M&A and what dealers need to know.
Mikiciuk, bringing more than three decades of Honda and Acura experience to the conversation, began selling cars in 1986 and joined American Honda two years later, eventually leading the Honda brand nationally after holding a series of roles across both brands. He later joined Victory Automotive Group, where he helped manage a portfolio that included more than 20 Honda stores, an experience he said gives him a unique perspective on the operational and strategic challenges facing Honda and Acura dealers today.
M&A activity
Cantin pointed to the current M&A environment as one reason Honda dealers should evaluate their options. About 1,100 Honda dealers operate in the U.S., and according to the Automotive News M&A Tracker, 26 Honda dealerships had changed hands so far this year, putting the market on pace for more than 40 transactions by year’s end. That activity is creating opportunities on both sides of the market, with strong demand helping sellers maximize value while dealer groups continue to seek out Honda and Acura stores as sought-after additions to their portfolios. Still, Cantin and Mikiciuk cautioned that dealers should think strategically about their options well before they are ready to transact.
Successful dealers tend to be process-driven and consistent about tracking performance metrics, Mikiciuk said, though the daily demands of running a store often leave little room for long-term planning. Owners can end up focused on the next 30-day performance cycle rather than where they want their business to be years down the line. That could mean rehabilitating an underperforming store, leveraging a strong management team to support another acquisition, or planning how ownership will transition to the next generation, and each scenario calls for a different strategy. Mikiciuk said DCG’s role is to help dealers identify those opportunities and maximize them within the context of their existing businesses.
Advisory should come before M&A
According to Cantin, one of the biggest mistakes dealers make is waiting until they have already decided to sell or buy before seeking advice, by which point some opportunities to improve the outcome may have already passed. He recommended dealers begin working with an advisor while they are still weighing their options, sometimes years before a transaction takes place, to better understand timing, valuation, succession and portfolio strategy. DCG’s partnership with Goldman Sachs gives the firm additional resources for succession planning and other strategic considerations, Cantin said, and Mikiciuk’s brand-specific experience adds another layer for Honda and Acura dealers working through that process.
OEM approval can shape the outcome
Mikiciuk also stressed the importance of understanding the OEM’s expectations before entering a transaction, since manufacturer approval is one of the final steps in completing a deal and different automakers apply different criteria to prospective buyers. A proposal that looks strong financially may not address every factor an OEM considers when evaluating a new dealer or ownership group. He pointed to his own experience at Victory Automotive Group, which completed two Honda sales and six acquisitions within the Honda dealer body last year, accounting for about 25% of Honda transactions nationwide during that period, as an example of what it takes to navigate a Honda transaction from start to finish.
Cantin and Mikiciuk’s broader message was that M&A should not be viewed strictly as a single transaction. For some dealers, the right move could be an acquisition, while others may benefit from restructuring their existing portfolio, bringing on a partner or preparing for succession, and understanding those options before circumstances force a decision can also surface operational improvements that strengthen the business regardless of whether a deal happens. For owners considering an eventual sale, improving performance, developing management talent and building a clear succession strategy can position a dealership for a stronger outcome, while buyers benefit from understanding where they can add value before acquiring a store. DCG’s advisory approach is designed to give dealers a seat at the table before those decisions become transactional, Cantin said, calling that early planning just as important as the deal itself for Honda and Acura dealers navigating an active market.
