Dealership M&A activity is climbing fast, but Presidio's data shows this isn't a fire sale. Operators are strategically pruning and buying based on brand strength and long-term earnings potential, not chasing peak profits.
Dealership buy-sell activity is accelerating even as average profits have slipped, according to two new reports from The Presidio Group.
📊 The Numbers
Transactions up 23% year-over-year through H1 2026, roughly 215 deals involving 315 dealerships
64% of dealers want to buy a store in the next year
18% want to sell, a record high since Presidio started tracking in 2023
Net pretax profit down 11.8% year-over-year, nearly matching Q1's decline
The M&A market remains robust, but buyers are much more selective about what they want to own.
Want the full conversation?
🎙️ Listen to today's Automotive State of the Union episode for the complete discussion, additional context, and the conversations that shaped our perspective.
Portfolio Optimization, Not Exits, Is Driving This Market
Kyle's read on the show: this looks like the market settling into a more balanced state after buy-sell activity surged coming out of the pandemic, then leveled off, and is now climbing again. OEMs pushing underperforming operators toward a sale is likely part of what's feeding this cycle too, as manufacturers increasingly expect real operational excellence from their retail partners.
Lexus, BMW, and Toyota Are Winning. Volvo and VW Aren't Even Getting a Number.
📊 Where Blue-Sky Multiples Moved
Lexus: up a full point to 10.0-11.0x, still the highest in Presidio's index
BMW: up to 8.0-9.5x, gaining U.S. luxury share as competitors lose ground
Toyota: up to 8.0-9.5x, driven by strong supply-demand dynamics
Chevrolet and GMC: both up, helped by manageable facility requirements
Audi: cut half a point to 5.0-6.0x, on an aging lineup and softer residuals
Volvo, Infiniti, and Volkswagen: valuation guidance pulled entirely, due to unprofitability or near-break-even performance
Despite the profit pressure, fixed-ops gross profit grew 5.2% in Q2, and F&I income hit a record $1,769 per retail unit.
The dealerships performing best are the ones that understand where their profits are coming from and are intentional about protecting those profit streams while watching costs.
What This Means for Your Store
If you're considering buying or selling in the next year, this data is directly useful right now. Know exactly where your own brand sits on the multiples spectrum before entering a conversation on either side of a deal, since the gap between a Lexus store and a Volkswagen store's valuation trajectory has genuinely widened this quarter.
