The Presidio Group

The Presidio Group?attended the Conference of?Automotive Remarketing?(CAR) in San Diego, CA, where?Nicholas Klass, Associate, represented the firm. The event provided valuable strategies for success, emphasized the needs of consignors, and introduced tools to streamline business operations. Attendees had the opportunity to connect with both new and familiar faces in a lively environment. Featured speakers included?Martin Romjue?from?Bobit Business Media Inc. ("BBM"),?Jimmy Douglas?from?Plug,?Stephanie Valdez Streaty?from?Cox Automotive Inc.,?Mike Moon?from?Element Fleet Management, and?Bill Corbett?from?Norwalk Auto Auction. The event was an over-all enriching experience, and we enjoyed getting to be a part of it!????? #CARConference2025 #AutomotiveRemarketing #AutoIndustry #AutoInnovation #VehicleRemarketing

Episode 41 of The Presidio Group's podcast is live! Tune in now to Full Throttle: The meeting point for automotive retail and technology. ? Presidio Managing Director Jason Stein interviews Eric Flow,?Flow Automotive Companies COO,?to discuss his optimism for 2025 as well as his view on EVs, the evolution of technology in the retail space and the challenges of going to a “back-to-basics” marketplace as the Great Normalization in auto retail takes shape. Click below to listen. And tune in every month for insights from the insiders. Full Throttle, a Presidio Group podcast, is where you'll find meaningful conversations with thought leaders who make news. https://lnkd.in/e6KJ7ZR2

The Walters family has sold?Bob Mayberry Hyundai?in Monroe, N.C., to Pablo River Partners, a Jacksonville, FL-based investment firm.?The Presidio Group?is proud to have advised on the transaction, which was finalized in March, marking the end of Missy and Ingram Walters' long-standing legacy in retail. Pablo River Partners is led by Chairman and CEO Charlie Tomm, who is re-entering the retail automotive space with the acquisition. Tomm previously held executive roles as CEO of Ford of Clermont, which was sold in 2022; CEO of Brumos Automotive, a Florida luxury-brand dealership group that was sold in 2016; CEO of Asbury Automotive Group, Inc. subsidiary Coggin/Courtesy AutoGroup until 2008; and CEO of Coggin Automotive Group until its merger with Asbury in 1998. Read the full?Digital Dealer Conference & Expo?story here: https://lnkd.in/eeW_ZCZZ

Every quarter, The Presidio Group provides a deep-dive into one of the factors driving dealership value as part of Presidio’s Valuation Matrix Spotlight in “Presidio Perspectives: A Quarterly Outlook on Auto Retail and M&A Trends.” Our most recent report highlights organizational talent. While balance sheets and physical assets tend to dominate discussions around buy-sell transactions, a critical element increasingly important to valuations is the strength and stability of the dealership’s workforce. This often-underestimated factor significantly influences performance, customer loyalty and, ultimately, a dealership’s appeal to potential buyers. “A stable team fosters stronger customer relationships, boosts service volume and drives sales. This, in turn, contributes to a more profitable and sustainable business, making it a more desirable acquisition,” said George Karolis, president of The Presidio Group. Strong employee retention translates directly into measurable business benefits and can boost the value of the dealership being sold. The Presidio team’s experience handling hundreds of transactions has given us deep insight into how the organizational talent factor influences dealership values and transaction execution success. To read more, see our latest quarterly report at:? https://lnkd.in/eDSdaVna

The Presidio Group?is thrilled to join?J.D. Power, the?National Automobile Dealers Association (NADA), and the?New York International Auto Show?for the Automotive Forum on April 15, 2025, at the?Javits Center?in New York City. Presidio President?George Karolis?will speak on the shift in auto dealership M&A from traditional models to increased activity from Wall Street, private equity, and family offices, as well as the future of OEMs, rising competition costs, and the potential impact of new Chinese entrants, in the?"Dealership Consolidation and the Future OEM Landscape"?panel. Presidio Managing Director?Jason Stein will host and moderate the following panels, which will delve into how current industry trends and economic factors are shaping the future of the automotive market: · Amazon & Dealers Partnering to Transform Automotive Retail?|?Fan Jin, Director & General Manager, Amazon Autos,?Amazon · KIA Motors?|?Steve Center, COO & EVP, Kia America · Nissan Motor Corporation?|?Vinay Shahani, SVP, U.S. Marketing & Sales, Nissan Americas · Volkswagen?|?Andrew Savvas, EVP, Chief Sales & Marketing Officer, Volkswagen North America · Volvo Cars?|?Michael Cottone, President, Volvo Car USA & Canada Register now and join us in NYC. You won’t want to miss it! https://lnkd.in/esMwm7ft #JDPowerAutomotiveForum #Dealerships #AutomotiveRetail #AutomotiveIndustry #CarShow

Every quarter, The Presidio Group highlights technology companies adding value to the auto retail ecosystem via products that improve the customer experience, drive revenue, increase efficiency and/or enhance profitability. This quarter we take a closer look at the market for online desking and sales software. In the latest issue of “Presidio Perspectives: A Quarterly Outlook on Auto Retail and M&A Trends,” we highlight A2Z Sync, an outgrowth of Schomp Automotive Group founded in 2014 as a customer-facing software solution for dealerships that connects the online and in-store vehicle buying experiences. A2Z has expanded significantly and is now the key automotive retail platform underpinning the Amazon Autos car-shopping marketplace. To read more about our insight into this sector of the industry, see our latest quarterly report at:?https://lnkd.in/eDSdaVna

As we move into 2025, the dealers and automakers are facing different challenges. While automakers continue to grapple with significant production overcapacity, the dealership base has adjusted more effectively to current consumer demand. New-vehicle sales for 2024 totaled 16 million units; while that number is expected to increase slightly in 2025, it’s unlikely to return to pre-pandemic highs. Automakers’ shift to more high-priced pickups and SUVs has led to higher transaction prices, but that risks alienating consumers already struggling with rising inflation and interest rates. The average MSRP of a new vehicle has surpassed $51,000, pushing monthly payments higher as auto loan delinquency rates climb. For retailers, this shift means preparing for a market where volume is lower but prices are higher, which could increase reliance on used vehicles, finance-and-insurance products and the parts-and-service business. As automakers try to maintain volume through incentives and retail discounts, the pressure to balance sales and profit margins will intensify. It positions both automakers and retailers for a 2025 in which the tradeoff between volume and profitability will be more apparent than ever. To read the report and register for future publications, go to: https://lnkd.in/eDSdaVna

We are honored to have exclusively advised Missy and Ingram Walters on the sale of Bob Mayberry Hyundai in Monroe, N.C. to Pablo River Partners, an investment firm based in Jacksonville, Fla., as highlighted in?Autobody News. The deal, finalized March 5, marks the close of the Walters’ long history in retail automotive as they pass the torch to new owners. Pablo River Partners is led by Chairman and CEO?Charlie Tomm, who is re-entering the retail automotive space with the acquisition. "The Presidio team has built deep expertise in facilitating smooth ownership transitions for family-owned dealerships,” said?Alex Watterson, managing director at?The Presidio Group. “The Walters family has built an exceptional business and strong community ties over decades, and we were honored to help them find the right buyer to carry on that legacy.” Check out the full story here:?https://lnkd.in/e8FCpbRE

While dealership transactions slowed last year, 2024 is still likely to be the fourth busiest buy-sell year ever. Presidio estimates the final tally for the year will come in around 360 transactions involving 515 dealerships once all 2024 deals have been reported. That would put 2024 behind transaction totals for the previous three years — and well behind the blockbuster year of 2021 when several megadeals pushed the number of stores sold to 707. 2024 deal closings notably slowed in late summer and fall as the presidential election approached. Pressure on already falling vehicle margins and uncertainty about the regulatory environment and dealership profitability delayed some transactions and put some buyers on the sidelines. The Presidio Group’s latest issue of “Presidio Perspectives: A Quarterly Outlook on Auto Retail and M&A Trends” offers a glimpse into the buy-sell market. To read more, click here:? https://lnkd.in/eDSdaVna

The Presidio-NCM Average Dealership Performance Benchmark shows signs of stabilization with net pretax profit for the average U.S. dealership dropping 24.4% in 2024, an improvement over the 30.4% decline in the first nine months. While 2024 may go down as the year with the steepest post-pandemic profit drop, the second half of the year signals potential recovery. Parts and service drove growth, and dealers look for that to continue — 86% of respondents to The Presidio Group’s latest Dealer Direction Survey said they expected fixed operations would be a major profit contributor in 2025. The average dealership retailed 883 new vehicles (up 2.8%) and 729 used vehicles (no change), with total revenue per store increasing 0.7% to $83.9 million. The performance gap among brands remains notable. Luxury-brand dealerships saw an average profit dip of 15.3% versus declines of 25.4% and 26.6% for domestic and import brands, respectively. Though earnings are still falling, the average dealership’s 2024 profit was 1.7 times higher than in 2019. The percentage of surveyed dealers expecting better results over the next 12 months rose from Presidio’s mid-2024 survey. As always, where the new normal end up can vary widely depending on dealerships’ brands and geographies. To read the report and register for future publications, go to: https://lnkd.in/eDSdaVna