The dealership buy-sell market is experiencing a surge in activity, with smaller and mid-sized stores drawing significant interest from regional buyers. Andy Gill, founder and CEO of Gill Automotive Group, joins on the latest episode of Driving Solutions to share insights on market trends, recent transactions, and what dealers should consider as the industry evolves.
According to Gill, the buy-sell market is “brisk,” with high liquidity among regional, non-corporate buyers. He noted a recent example where a struggling domestic dealership outside Raleigh, North Carolina, generating $30-$40 million in revenue, received ten letters of intent (LOIs) within just seven days. “I’ve never seen anything like it,” Gill said, underscoring the level of demand.
He observed that many smaller and mid-sized dealerships, with revenues ranging from $12 million to $70 million, are entering the market. With an aging dealer base—the average dealer is now 72 years old—many are considering exits while the market remains strong.
Gill highlighted a recent successful deal involving Myrtle Beach Kia, which began as an unsolicited offer. While the initial buyer did not close the deal, Vernon Kraus later acquired the dealership in a seamless transaction. This reflects a trend where many dealers are open to selling but prefer avoiding the traditional listing process. Gill frequently facilitates direct buyer inquiries and has closed five or six deals through this approach.
Looking at the future of the market, Gill pointed out that Stellantis and Nissan dealerships are offering strong value opportunities, while brands like Hyundai, Kia, and Subaru have become significantly more profitable. He emphasized that many dealers who acquired these franchises years ago at minimal cost may be sitting on substantial market value today. Some Hyundai and Kia dealerships are commanding valuations of five to seven times earnings in strong markets.
On the broader economic and political landscape, Gill expressed confidence in President Donald Trump’s administration and its impact on the automotive industry. He believes that while the proposed tariffs on imported vehicles are a concern, they are unlikely to have a long-term negative impact. “The dealer body, in general, is ecstatic about the direction everything’s going,” he stated.
Having spent 23 years as a Chrysler dealer, Gill brings a dealer’s perspective to his brokerage work. He analyzes financial statements through the lens of an operator, identifying missed revenue opportunities beyond simple earnings multiples. For example, he noted that the public dealer groups currently average $2,404 per vehicle in F&I gross profit, and dealers underperforming in this area may be leaving substantial profit on the table.
"Timing is everything. ... The stars are aligned. ... If I'm a dealer out there, you gotta think about that." – Andy Gill
