Using its new AI-powered data-mining software, Retail automotive M&A advisory firm Dave Cantin Group (DCG) can now provide accurate, reliable data-driven valuations for any new-car dealership in the United States, regardless of brand, location, or direct input from the dealership.
Dave Cantin, DCG Founder and CEO, emphasized the advantage Jump IQ brings to automotive dealers: “Our proprietary Jump IQ software provides a significant advantage to automotive dealers who work with the Dave Cantin Group.” He added, “With Jump IQ, DCG owns accurate, reliable real-time data that directly improves our ability to secure successful M&A outcomes for our clients.”
DCG’s proprietary software ingests over 250 million data points – and processes billions of data points – to create dynamic, real-time profiles of all 18,000+ U.S. franchise dealerships. The AI-powered software then uses that data to accurately and reliably establish financial information, performance data, and an overall valuation for each franchise dealership. Additionally, it includes a tool to compare any subset of dealerships to one another: any brand, any geography, in real-time.
Developed in late 2022, Jump IQ has undergone rigorous testing with industry stakeholders over the past six months. Starting this June, DCG will integrate Jump IQ into its core M&A acquisitions business, with an anticipated immediate impact on automotive groups seeking unlisted dealerships for acquisition. DCG’s Chief Artificial Intelligence Officer, Bruce Molloy, spearheads the Jump IQ initiative.
“More than half of the deals done in retail automotive are initiated by a buyer looking for a targeted acquisition,” Cantin explained. “With Jump IQ, when we sit down with a buy-side client, we can model and pull up information concerning any dealership on a big screen and strategically identify top targets based on geography, brand, revenue, performance, or any number of other criteria. When we use that data to engage a target dealership’s principal to gauge interest in a possible divestiture, we’re informed and can engage with the assurance that our buyer’s interest is truly qualified.”
As part of the Jump IQ rollout, DCG is introducing a fee-for-service advisory model, enabling automotive groups to leverage Jump IQ for strategic platform management. Later this year, DCG plans to expand its advisory services, offering Jump IQ-powered evaluations of over 40 dealership key performance indicators (KPIs) to advise clients on optimizing performance and enhancing enterprise value.
Jump IQ has demonstrated impressive accuracy, testing within a 1% – 9% variance across key financials and KPIs when compared to actual data from cooperating dealers. These results are expected to improve with increased usage of the software. Currently, Jump IQ is exclusively available through DCG.
