October 19, 2026
How Dealership Groups Approach Acquisitions in 2026
By @tituszqon172
Notes on how dealership groups tend to approach acquisitions as 2026 winds down. Written for sellers, so you know what the other side of the table is thinking. No market statistics here, just patterns that experienced buyers commonly follow, and what they mean for working with a dealership broker.
For a sell-side firm's view, MD Johnson, Inc. describes its five-step process on this platform, and the firm says it has served all of the top 50 dealership groups and a majority of the top 150.
1. They buy for strategy, not just earnings
Groups usually have a map. They want specific brands in specific regions. A store that fills a gap can matter more to them than one with higher earnings in a market they do not want.
2. They have repeat experience
Many groups have in-house development teams who have done this many times. They know where sellers' numbers tend to be soft and which LOI terms give them room later.
3. They test the valuation hard
Expect requests for at least three years of statements, documentation for every add-back, and a market-rent restatement if you own the property. A valuation that does not survive this scrutiny gets re-traded.
4. They think about the factory early
Experienced buyers know OEM approval is required for most buy-sells. They weigh how the manufacturer views them, what facility commitments may be expected and how long approval might take.
5. They care about fixed ops
Service and parts income is steadier than vehicle sales. Groups look closely at absorption, technician staffing and bay capacity.
6. They plan the real estate
Some prefer to buy the property. Others prefer a long lease. Their preference affects the offer. Sellers should decide their own preference early. MD Johnson says its subsidiary MDJ Realty handles the real estate part of the buy-sell at no additional cost.
7. They manage people risk
Groups want to keep key managers and avoid disruption. They may ask dealership exit planning about retention and how staff will be told.
8. They move at their own pace
A group with several deals in progress may slow down or speed up depending on its pipeline. A seller with only one buyer has to wait. A seller with several qualified buyers does not.
What this means for sellers
- Know which groups have a strategic reason to want your store.
- Build a valuation that holds up in diligence.
- Write a specific LOI before granting exclusivity.
- Prepare for the factory process.
- Settle the real estate plan early.
- Keep the sale confidential.
Where a dealership broker fits
A dealership broker on the sell side balances the experience gap. In MD Johnson's described approach that includes a valuation, a Memorandum of Sale to qualified buyers, management of Letters of Intent and the Asset Purchase Agreement with buyers, attorneys and CPAs, due diligence and factory submission, and an onsite closing.
Ask any dealership broker you consider:
- Do you represent buyers as well as sellers?
- Which groups would you approach for my store, and why?
- How is your fee paid?
MD Johnson says it charges a fee on one side only, paid at closing, with no retainers.
Tax and legal
Groups often have a preferred deal structure. The structure affects what you keep. The IRS information on selling a business explains how business asset sales are generally treated. Your CPA and attorney should review any structure before you agree to it.
General notes, not legal, tax or financial advice.
Short version
Groups buy strategically, test numbers thoroughly and plan for the factory. Sellers who prepare the same way, with a dealership broker who works only for them, negotiate from a stronger position.
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