Buy-Sell Activity Slows in 1st and 2nd Quarters

By: Logan Parker

After several years of record high dealership transaction activity, the pace of new transactions coming through our door has slowed during the first two quarters of this year. The market has not experienced such a dip in activity since the start of the COVID-19 pandemic. This is not just our assessment, but the top brokerage firms have also noted the decline in buy-sell activity for the first half of the year. 

There does not appear to be a single reason for this slump. Historically active buyers have paused their buy-sell activity seemingly to focus on the operations of recently acquired dealerships. Other potential buyers are worried about high interest rates, manufacturer relations, the ever-looming tariffs, and overall declines in profitability. Despite these challenges, many groups are still interested in acquiring new dealerships. They just aren’t pulling the trigger nearly as often. Buyers have become very selective – line make choice and location have never been more important.  

To date, Bass Sox Mercer has closed 17 transactions. The dealerships were located in Alabama, California, Florida, Georgia, Kansas, Maryland, New Jersey, New York, South Carolina, Texas, and Virginia. The firm also has active deals in 10 other states. 

If you need assistance with a buy-sell opportunity or a real estate transaction, please contact a member of Bass Sox Mercer transaction team.