The automotive industry is in the midst of a strategic transformation, and no one sees it more clearly than Dave Cantin, Chairman and CEO of the Dave Cantin Group (DCG). From rising consolidation to the growing influence of AI in dealership valuations, Cantin has his finger on the pulse of the market. On this episode of Inside Automotive, he explains how dealers are becoming smarter, more strategic, and better equipped to seize opportunities, using data to uncover hidden value in their portfolios.
"Everyone's fighting to buy the best acquisition, right? What fits their portfolio the best? What brands are they performing at the highest level with? And where could they get the best bang for their buck? And then again, it's the geographic location. Everyone's fighting over the same locations that want to grow, and we continue to see consolidation at an all-time high."
Quality v. quantity
With consolidation at a record level, both public and private dealer groups are targeting acquisitions that strategically align with their portfolios rather than simply adding volume. Cantin notes that confidentiality is crucial to ensure smooth transitions and safeguard staff morale.
Recent acquisitions illustrate this trend in action. For instance, Lithia’s Florida purchases, including West Palm Beach Hyundai, Genesis, and Accurate dealerships, were carefully selected to complement the company’s existing portfolio. Cantin said speed and preparation are key, with many deals kept confidential until officially announced. This approach protects staff, maintains operational stability, and ensures a seamless acquisition process for both buyers and sellers.
Valuations driven by operations
Further, valuations are increasingly tied to strong operators, top-performing brands, and prime locations. Dealers are leveraging data and technology to benchmark performance and enhance enterprise value. Cantin highlighted DCG’s proprietary AI platform, JumpIQ, which tracks 40 data points across 18,000 rooftops nationwide, enabling dealers to evaluate potential acquisitions and optimize profitability.
While the Southeast and Sunbelt remain hot markets, other regions are drawing renewed interest. Cantin notes that Nevada, the Pacific Northwest, and California have emerged as promising areas, and dealers in the Midwest and Northeast continue to achieve strong results. He also stresses that success depends on understanding local markets and strategically targeting opportunities.
Transforming M&A decisions
While technology is reshaping M&A decision-making, AI and data analytics allow dealers to assess the value of their businesses and potential acquisitions with greater accuracy. “It’s critically important to understand where you are and where you need to go,” Cantin said, noting that many dealers underestimate the true enterprise value of their operations.
Looking ahead, Cantin expects the market to remain strong through 2025 and into 2026. Dealer confidence is particularly high among Stellantis franchise owners, who have seen improved manufacturer support and profitability. He advises dealers to leverage technology, focus on operational excellence, and understand their market relative to competitors to enhance both volume and profitability.
