The retail automotive mergers and acquisitions market has started to accelerate as dealership groups and individual storefronts look to take advantage of a stronger economy. Since the start of the year, many notable transactions, some of them record-breaking, have arisen from the sector, signaling a return to pre-pandemic buy-sell norms.
On this episode of Inside Automotive, host Shyann Malone is joined by Troy Duhon, founder and owner of Premier Automotive based in New Orleans. The dealership group recently added seven new storefronts to their portfolio across three states, bringing the company’s total count to 37 locations. To give more insight into these transactions and the broader status of retail automotive mergers and acquisitions, Duhon shares his experiences in the buy-sell market along with his rationale for expanding.
1. Duhon prioritizes partnerships over total ownership, as it encourages store runners to take better care of their dealerships and helps them achieve their dreams.
2. This emphasis has helped Premier Automotive attract more interest in the mergers and acquisitions market, allowing the dealership group to scale rapidly and efficiently.
3. Manufacturers are also promoting partnerships in the mergers and acquisitions market through programs, some of which are focused on helping minority dealers into co-ownership positions.
4. Under Duhon’s leadership, Premier Automotive has contributed heavily to charities and community welfare projects, such as the construction of nine orphanages around the world.
5. Duhon expects the market to force slight reductions in the prices of used vehicles and more significant increases in the costs of service and maintenance.
"When I was young, my dad would always say: 'Son, it ain't never the land, it ain't' never the brand, it's always the man.' And what he meant by that is, when someone brings me an opportunity, I'm looking at the guy. You gotta look at the...operator first." — Troy Duhon