The pace of dealership consolidations quickened in 2022, a trend likely to continue this year, making it more important than ever for store owners to closely follow mergers and acquisitions news. Bob Morris, Director of the Southeast Region at the Tim Lamb Group, is a frequent guest on CBT News thanks to his insightful knowledge of dealer M&As. At the 2023 NADA Show, CBT News anchor Jim Fitzpatrick got the opportunity to sit down with Morris again to discuss the state of the auto industry.
1. The distribution model is likely to remain industry standard since automakers lack the experience and capital to replace the services dealerships provide.
2. Dealers who sell their store on their own typically lose money, which is why working with a mergers and acquisitions professional is important to ensure valuations are conducted thoroughly and transparently.
3. Morris reports that dealers in warm weather states such as Florida continue to attract significant attention from buyers.
4. Morris notes that every dealership has a price, meaning that anyone interested in entering the industry or expanding their locations has a solid chance of finding a suitable storefront.
5. Morris believes that the used car market is historically strong and that dealerships in every state should carry pre-owned inventory.
“100% of car dealerships are for sale.” — Bob Morris
— Bob Morris is the Lamb Group’s southeast region Director, and has 44 combined years in the auto industry, from selling cars to selling stores. Morris broke the record for closing the biggest dealership sale in 2011, which cost the buyer $250,000,000 in total.
Click here for more 2023 NADA Show coverage on CBT News.
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